Vallikunnu Panchayath came into existence in 1962. Vallikunnu got its name after the river "Valliyar", which flowed encompassing the hilly area. This gramam got place in many old literatures of Kerala. Ullur S Parameswara Iyer mentioned in his great work "Kerala Sahithya Charithram", that the "Valli Gramam" referred in "Basha Naishadam Chambu" of Mazhmangalam is Vallikunnu Desam. This Desam was under the administration of the Royal Family of Parappanad. The Monarchy of Parappanad kingdom led to the development of this village. The Head Quarters of Parappanad Kovilakam was in Neduva village of Parappanangadi panchayath. We can see Remains of Parappanad palace, Oottupura, and Kolappura in Neduva village. For administration purpose this place had been divided into five "Tharakoottangal" by the rulers.
According to some historians, ancestors of Velu Thampi Dalava belong to Vallikunnu, and later they migrated to Tiruvithamkur. The old port named 'Thindis 'belongs to vallikunnu. Now the place is known as Kadalundi Nagaram. It is to be believed that the birth place of A.R. Raja Raja Varma, the famous Malayalam Pandit was in vallikunnu.
