The name Kuthiathode comes from Kuthia (digged) + thode (river stream) means a digged-river. The Kuthiathode or the river stream was once the major waterway for transporting goods to the local market from Kochi via the Vembanad lake. The local market on both sides of the river was a major commercial hub around the locality. Even now the market exists with few wholesale traders selling vegetables, provisions. The Kuthiathode river connects the vembanad lake with the Tazappu backwaters on the western side.
