The adjacent towns are separated by the River Mahendra Tanaya.In later medieval period it became capital of Paralakhemundi Estate of Eastern Ganga Dynasty kings of Khemundi Branch. Pathapatnam /Purunapatana town in the Srikakulam District of Andhra Pradesh is considered as twin city to Paralakhemundi due to its very close proximity.
The city and the District share its boundaries with Andhra Pradesh. Majority of the people in the town speak Odia. Paralakhemundi shortly known as Parala is district Headquarter of Gajapati district and one of the oldest Municipality established in 1885, in the Indian state of Odisha.
