The temple was constructed in the early years of 20th century by sri Govinda Naik, the then Distric collector.The idols of Lord Rama, sita , Laxmana and Hanuman  were said to have been originally brought from kasi  by smt.Domala Radhamma a devotee of Lord Dattatreya .On the request of the collector and other elders of this place she agreed to install them at the right bank of river Godavari . In between the Gauthameswara temple and the Saraswathi temple Sri Rama temple is constructed. A spacious Mandapam with sixteen stone pillars is built in front of the temple.The flooring was done with coloured tiles enclosed by iron grills. The temple has 15 acres of dry land.