Chavara is situated on the shores of the Arabian Sea and the major freshwater lake in Kerala, Ashtamudi, which flows through it.

[2] Some important areas around Ashtamudi lake in Chavara are Kurishumoodu, the Old Portuguese cross, Karattal kadavu, TS canal, Idathuruthu and fisherman colony, Koyivila boat jetty, Arinallor Kadavu and Cherikadavu backwater.

The major industries in the public sector at Chavara that deal with the mining and processing of rare-earth metals are Kerala Minerals and Metals Limited (KMML) and Indian Rare Earths Limited (IRE).

Kerala Premo Pipes a govt company (under KWA) in Chavara has been lying closed for the past 18 years.

The Premo pipe factory started production in 1961 and closed in 1997 following adverse market conditions.