Palair, a tributary of River Krishna, is a beautiful place near Khammam. River Krishna forms into a small lake here that is famous as Palair Lake and reservoir. Palair is a beautiful lake and reservoir 2 kms south-west of JAWAHAR NAVODAYA VIDYALAYA Palair village. It is the balancing reservoir of Nagarjuna Sagar left canal, with water spreading over an area of 1748 hectares. The water here is free of pollution and offers a best place for water-based adventure and entertainment. 

         The fresh water fish and prawn are must-eat here as you get good variety of them. The freshness of the lake water makes it a good place for rearing prawn and fish, thus enhancing the economical growth. The water from this lake is diverted to nearly 17 canals, which includes Bonakal branch canal and Mangapuram branch canal for irrigation.

           For peace seeker this place offers a best spot to relax with its serene backdrop and for adventurous, this place provides good water sports and activities. But you will have to carry your own sailing stuff.