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The Varahi River takes it's birth in Shimoga District and flows towards the Western Ghats from where it's known as the Halady River.

The Varahi Dam is a source of power to the areas surrounding the river. It generates about 250 Megawatts of electricity which in turn provides irrigation & power to 60,000 acres of land in Kundapura, Udupi, & Karkala. The multipurpose project is the only one in the state.

This area attracts scientists , nature lovers & writers alike as the beautiful hills & mountains around it offers a breathtaking view.