According to the legend, Kerala is the land gifted by Lord Parasurama, the sixth incarnation of Lord Maha Vishnu. The installation of the idol of the Lord Mahadeva was performed by Lord Parasurama himself. This magnificent temple is one among the 108 Siva Temple established by Lord Parasurama. Lord Maha Vishnu was incarnated as Parasurama in the Thretha-Yuga. The exact period of installation of this temple is not known. Vazhappally temple is historically important and contains some lithic records of the reign of Rajasekhara Varma Kulasekhara (820-844AD) besides some fine seventeenth century wood carvings (Daarusilpas) depicting figurines from epics. The Vattezhuttu inscription on the northern part of the base of the cultural shrine indicates that the repairs were completed in Kollam era 840 (ie.1665AD). It is an ancient Grama Kshethra also known as “Dakshina Kailasam”
In ancient period, this temple had 54,000 para paddy fields (Nilam). The soldiers of Chempakassery Raja killed one Unni of Changazhimuttom family of Kuttanadu who has gone there to measure the “Patta Nelu” of Devaswom at Venattukara field. He is installed as a Bhramma Rakshas in this temple. In order to satisfy the Bhrahmma Rakshas, “Kazhumaram” is being made in front of the Rakshas Shrine and the Prathiroopam of Chempakassery Raja is hanged. The Raja gave the pooja items for Pantheeradi to the temple as a mark of his repentance for killing Unni. The Raja has appointed the members of Thiruvenkitapuram Warriam as the heir of “Pantheeradi Choru”.
The idol of the vazhappally temple is centuries old and is considered as the Siva of Neelamperoor temple. The legend behind this concept is that CheraRajaPallibana Perummal, a follower of Budha, when de-throwned by the “Hindu Bhattas” following a defeat in argument ,reached Neelamperoor. The news came to the ears of the potties of pathillams (Chengazhimuttam, Kainikkara, Eravimangalam, Kunnithidasserry, Athrasserry,Kolencherry, Kizhangazhuthu, Kannancherry,Thalavana etc.),that perumal is going to install his personal idol at Neelamperoor.Pathillathil Pottimars run with the idol Shiva of Neelamperoor and installed that idol at Vazhappally.
The oldest Cheppedu in Kerala History “Vazhappally Cheppedu” (Vazhappally Proclamation) was obtained from the Thalavana illam, which is situated opposite and near to the temple. This Cheppedu dates backs to AD 830 Rajasekharan, who formulated the Vazhappally Proclamation(Vazhappally Sasanam) was an ardent believer of Siva. The 8th Century marked the advent of King’s rule in Kerala. So the period of Rajasekharan’s rule might had been from AD 820 to AD 844. This historical document belongs to the 12th Administrative year of Rajasekhara Devan Rajadiraja Parameswara Bhattakaran.
Accroding to Shasana ‘the Eighteen inhabitants of Thiruvattuvaya and Thiruvazhappally had assembled under the leadership of Rajasekharan at Kodungallur and decided to impose punishments for the persons, who obstruct the “Muttabali” at Thiruvattuvaya temple. The punishment was 100 Dinner (Roman coin) as fine and deemed to have considered as “Mathru Parigraham” and the punishment for that will also be given to him. In case of dereliction of duty of servants, Four Nazi of rice will be recovered from them. Rajesekhara devan, who proclaimed this Shasanam is said to be Cheraman Perumal.