The Valiyaparamba backwaters, a large body of scenic backwaters is fed by four rivers. The backwaters get their name from Valiyaparamba Island, which is about 10 km south of Nileswaram. This island, separated from the mainland, is also a prominent fishing centre.

The Bekal Resorts Development Corporation provides houseboat services on the Tejaswini River from Kottapuram in Neeleswaram to Kannur, through the Valiyaparamba backwaters. Apart from the cruises, dinner at an island, canoeing and many other facilities can also be arranged here.