Pallipalayam ( பள்ளிபாளையம் ) is a municipal town in Namakkal district in the state of Tamil Nadu. Power loom based activities are the major economic activities in this town. It is located very closer to Erode, a well known textile centre. It is a part of Kongu Nadu region of Tamil Nadu ruled by the ancient Western Ganga Dynasty. Its Legislative Constituency is Komarapalayam and Parliamentary Constituency is Erode.It is Located one side of River Cauvery, while Erode is on the other side. It is located at 6 km from Erode Junction and 3 km from Erode Bus Station. The Town Panchayat was constituted in the year 1963 and was subsequently upgraded as Third Grade Municipality from 07.10.2004. It has a population of 35635 (2001 census) and an extent of 4.70 Sq. Km., The town is divided into 21wards. The river Cauvery's beds are rocky and unique in its plains which support the growth of popular Fresh water fish breeds like eels. The Chicken Variety named after the town,"Pallipalayam Chicken" is famous all over the country, even in middle-east and western countries. This town is surrounded in the north by Pallipalayam Agrharam and in the south by Pudupalayam Village Panchayat,Alampalayam Village Panchayat forms the physical boundaries of Pallipalayam in eastern directions and Erode Municipal Corporation forms the boundary along western side. It is situated along the banks of Cauvery River and lies 3 km North of Erode and 60 km south of Salem. Pallipalayam Town is located along Erode-Tiruchengode, Erode-Kumarapalayam and Erode-Sankagiri State Highways. Many people residing at Pallipalayam work in Textile and allied industries of the region. Major industries of the region are Handloom, Power loom and dyeing units. A very common cottage industry identified in the region is handloom industry, which is engaged in the export of bed sheets, towels, floor rugs, tea towels,napkins, aprons, kitchen towels, pot holders, bathmats, tea mats, curtains, quill covers,shower curtains etc.