The town of Ramagundam gets its name from a combination of two words: (Rama + Gundam). A famous temple of the Hindu God Lord Rama is situated in the old part of the town and 'Gundam' means Water Springs. Ramagundam city is Adjacent to Godavarikhani city.
Nearby Townships/Areas around the city Godavarikhani like 8th Incline Colony , Fertilizer city Fertilizer Corporation of India NTPC-Jyothinagar, Medipally OCP, Powerhouse Colony-Ganganagar, Centenary Colony, Janagama, Pothana Colony,Gowthaminagar etc collectively called as "RAMAGUNDAM". Coal city (Godavarikhani),Power city(Jyoti nagar),Fertilizer city (Gouthami nagar) are the major industrial colonies.