Kalakote is Tehsil Headquarter of Rajouri District and is comprised of 68 villages and 0.75 lac population as per DISNIC Survey 1995. Out of these 0.41 lacs are Hindus, 0.33 lacs are Muslims and 0.01 lacs are Sikhs. It is a mountainous track falling in between Koteranka and Sunderbani. The main livelihood of the people is agriculture and allied activities. In the beginning of 50s, a Thermal Power Station was established at Kalakote keeping in view the available coal resources. But after commissioning of this project, it was found that the coal available at site was not suitable for the project due to which, the project is closed at present. However, coal is the main resource of the Tehsil, which is presently being exported out side.

  The place is surrounded with dense forest and is quite calm and serene. In winter months, number of visitors is increased to have a bath in spring named as Tatapani. The bathing in the spring water is believed to cure many bone and joint pains and skin diseases. The water emanating from the spring appears very hot and even closed to the boiling point. The people have to adjust themselves into water heat by dipping hands and feet first and by-and-by one is able to stand in the water.The water contains a lot of minerals principally amongst them is phosphorus. Constructing some sarais for the visitors, proper road linkage from main road and proper conveyance facilities can develop this place.

Another important place in Kalakote area is "Shrine of Manma Mata". The temple is about 6 kms from Kalakote Town located in the Southern side. There is a cave at site and legend goes that Lord Shiva had gone to Kashmir via this cave. Later on, Manma Mata Devil had come to this place and meditated for several years in the cave.