The history of Alleppey district is dated back to the 16th century and was dominated by local as well as colonial rulers. In the early 16th century, some small principalities like Kayamkulam, Purakkad and Karrapuram with its two principalities named Moothedath and Iledath came into the power. At the same time, the Portuguese also took strong hold over the district and constructed various churches and started preaching Christianity in the regions of South India.
In the 17th century, the Dutch came into existence and interfered with the cultural and political issues of the Alleppey district and also built factories and warehouses. It was during the reign of King Mathandavarma that the Dutch rushed away and the district made a remarkable progress in administrative and commercial sectors. The town of Alleppey was founded by Raja Kesavadasan in 1762 who was the Diwan of Travancore. At this time there was only one canal crossing the sand strip of Arabian Sea and Vembanad Lake but soon the city started to grow as a major waterway giving rise to several commercial and trade establishments. This made the town as one of the busiesttrade centre in the country and attracts a number of traders from all the parts of the world in search of souvenirs. In 1816, the local headquarter was established in the town by the Church Missionary Society.