Named after Kallai, the core center of timber trade in north Kerala
, the Kallai River originates from the Cherukulathur village in Kozhikode District
and links itself with the Chaliyar on the south by a man-made canal. It traverses the state through Cherukulathur, Kovur, Olavanna, Manava and Kallai before merging with the Arabian Sea
. The 22 km long river covers an area of 96 sq km, and is one of the most important in the entire state from the commercial point of view.