Kallayi River begins flowing from Cherukulathur village. It is linked with the Chaliyar which is the artificial canal located on the south side. In the business point of view it is one of the important rivers in the whole Kerala State. The total length of the river is 22 kms and its drainage area covers an area of about 96 sqkms. Kallayi River flows through the Manava, Kovur and Olavanna. It finally joins with Arabian Sea at Kozhikode. Other attractive place located near the Kallayi River is Kallayi timber centre. It was once the 2nd largest timber centre in Asia. Here the woods are exported to other countries through ship.