The Kayalpatnam Municipality open the session in 1952 with the title of grade Town Panchayat. From 1982 with the title of Selection grade Town Panchayat. After 14.06.2004 it upgraded to III Grade Municipality G.O. Ms. N0. 270(MA & WS) Dt :11.06.04.. The area of the Municipality is 12.50 Sq.Km.