Matsyagundam, popularly known as the ‘fish pool’, is located in Araku Valley. This hamlet is home to varieties of fish and a century old temple known as Sri Matsyalingeswara Swamy Temple.

There are several folklores attached to this temple of Lord Shiva. It is said that there was a fight in a place called Gemmili between the Singarajulu or snakes and the Matsyarajulu or the fish. After this fight, the Mother Fish rescued all the fish and came to this village. After the arrival of the Mother Fish, this hamlet was given the name Matsya Gundam. It is widely believed that till this day, the fish are protected by Sri Matsyalingeswara Swamy.

Owing to this belief, aborigines of the village neither hunt nor consume fish. The people of this village get together during Maha Shivarathri, a three day festival, in order to organise various programs. Other attractions of Matsyagundam include Machkhand River and Sangda Waterfalls.

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