Andhra Desa Grandhalaya Sangham secretary Pathuri Nageswara Rao suggested merger of the two libraries to get regional status.

Following the advice of the elite in the city, the two libraries were merged and named as Gowthami Grandhalayam and registered under the Societies Registration Act, 1920.

Vavilala Gopala Krishnaiah and AB Nageswara Rao were successful in getting regional status to the library.

[3] Later land was bought at Lakshmivarapupeta and a rich landlord Kanchumarti Seetaramachandra Rao constructed a building in memory of his daughter Babayamma (one of the first women to complete matriculation in Rajahmundry) who died young.

[7] With a good collection of both Telugu and English classics, including old editions of Shakespeare, the library was first managed by a committee elected by select lifetime members.