Legend says that the town was named after Lalita, the wife of a southern king who is thought to have built this town. The town was put up on a raised river frontage along the Shahjad River and Biana stream, on the east and north respectively.
Tanning, saw milling, shoe making and soap making are the cottage industries of the town. Tourist attractions include Govind Sagar Dam, a 14th century Muslim tax-collecting post-called bansa and a Jain shrine. Chanderi and Deogarh are nearby attractions.
An airfield catering to civil and military aircrafts is situated in the city outskirts (8 km). Gwalior Airport, 235 km away, is the nearest major airport.
Lalitpur Railway Station is on the Bhopal-Jhansi line. The
National Highway 26 passes through Lalitpur.