Pothundi Reservoir is believed to have been constructed in the 19th century for irrigation purposes. It is situated at a distance of around 17.5 km from Nelliyampathy, in a small village of Palakkad District. The reservoir is constructed across two tributaries of Ayalar River, namely the Meenchadyppuzha River and the Padippuzha River. This reservoir has been developed without a conventional concrete core, commonly used to offset the force exerted by high water pressure. It is believed to have been built without any cement mixture. Pothundi Reservoir is one of the important sources of drinking water in the region and is a famous picnic spot. Tourists can enjoy boating at the reservoir.