It is the site of the ancient Dhanyakataka which was the capital of the Satavahana kingdom which ruled in the Deccan around the 1st to 3rd centuries A.D.. It was also the capital of the Kota Vamsa Dynasty which ruled in medieval period until mid 12th century. The Krishna valley is an important rice producing area. It was also an important centre of trade with other parts of India and foreign countries. The place is also famous for the great Buddhist stupa and Kalachakra ceremonies conducted there. Hsuan Tsang visited Amaravathi and wrote a glorious account of the place, Viharas and monasteries that existed then.