The Kothagudem district is formed from erstwhile Khammam district. The district boundaries with Bhoopalapalle, Mahabubabad and Khammam districts and the states of AP and Chattisgarh. The district comprises 23 mandals and 2 Revenue divisions Kothagudem and Bhadrachalam. The District headquarters is located at Kothagudem town.

Bhadrachalam, a key town of pilgrimage importance, is located in Kothagudem district. The temple town of Bhadrachalam is situated on the banks of Godavari River. The town shares its historical significance with Ramayana Era. The name Bhadrachalam is derived from the word Bhadragiri (The Mountain Abode of Bhadra, the child of Meru and Menaka). The famous temple at Bhadrachalam is home to the Archa Murthys of Rama, Sita and Lakshmana and their idols are believed to be swayambhu i.e. self-manifested ones.