Draksharamam is a Shavite shrine. It is belived that sage Vyasa who performed penance here named this as Dakshina Kasi (Southern Benaras).

Legend has it that the Saptamaharshis (Seven sages) to achieve the end of their penance divided the akhanda (unbranched) Godavari river into seven different streams at Draksharama.

Bharadhwaja, Viswamitra and Jamadagni streams known as Antarvahinies, were believed to have gone under ground. There is Sapta Godavari Kundam (Seven river pond) near the temple. Devotees bath in this kundam. Sivarathri attracts huge crowds of pilgrims.