Penukonda means a big hill. It is located 70-kms from Anantapur on the Kurnool-Bangalore road. The town is most picturesquely situated at the foot of a fortified hill and connected with it at both the ends runs a semi circular line of fortifications. This town has become famous, as Penukonda fort is situated here, which is one of the major tourist attractions of Andhra Pradesh.
                       Penukonda, a hill is located 70 kms from Ananthaput, called as "Ghanagiri".The structure of the fort Ghanagiri ,shows its splendid sculptural beauty and skilled workmanship of ancient times.History says, the Penukonda fort was the capital of Vijayanagara Empire for a short period and it is most inaccessible to the enemies. An inscription at Kallodi in Mysore reveals that Bukkaraya had a channel dug in order to bring water from the Penneru to this town, which would appear to be originally the summer resort of Vijayanagar Kings of the second dynasty, which is called "Gagana Mahal".