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It is the administrative headquarters of Chalisgaon Taluka. It has a population of approximately 1,50,000 people. Chalisgaon was founded in 1847 by Shri Khanduji Maharaj (1823–1885), who also established the town's first cotton mill and its first sugar factory in 1864. The town was named after his wife "Chali" (चाली). He built a temple dedicated to Lord Vitthal on the banks of river Godavari which still stands today as one of Chalisgaon's most prominent landmarks. This temple is now known as Vithal Mandir or Balaji Mandir and attracts thousands every year during Janmashtami celebrations when it houses an idol made out of Ghode Khade ("cotton candy").