The name of the town Gudiyatham has arrived from the word ‘Kudiyetram’ (குடியேற்றம்) which in Thamizh means ‘surging population’. It is said that, Kulothunga Chozha cleared some forest, made people settle here and named the place as ‘Kudiyetra Nallur’ (குடியேற்ற நல்லூர்), which is believed to be the ancient name of this town. This place also was called as ‘Jayamkonda Chathurvedi Mangalam, as the king Kulothunga Chozhan donated this place after his victory over parts of Thondai Mandalam regions. Even today, the majority population of this town belongs to a community called ‘Sengunthar’ who were integral part of Chola army.
Sri Gangai Amman is believed to be blessing the native people without any scarcity of water and with good health. Like Samayapuram, one can see many people affected with small pox, staying in this temple till they get cured. The Goddess cures many such illnesses of people. People offer Salt and Pepper in the temple to get their illness cured.