The city of Rudrapur was founded by Rudra Chand a king of Chand dynasty, which ruled over the Kumaon kingdom in 16th century. According to a folktale, when King Rudra was passing through, his chariot got stuck in marshy land, so he decided to build a temple and well at that place. The present Atariya temple is the same, at a distance of 2 km from the bus stand and half a kilometre away from the Rudrapur Haldwani motor route.
Every year on the occasion of Navratra a large fair is held here and thousands of devotees come to seek the blessing of Goddess Atariya. The fair is held for 10 days.
It is now a small and beautiful town with all basic modern facilities. In vicinity of Nainital,
Many new industries are now rushing in to setup business at SIDCUL Industrial Estate established at Pantnagar in the vicinity of Rudrapur. With industries to the likes of Dabur, Delta, Bajaj Auto, Britannia, Nestle, Ashok Leyland, Zhandu Pharma and Tata Motors setting up base here, Rudrapur is set to become an industrial hub.
Rudrapur has also developed as center for medical advances and even the people of nearby cities are greatly benefited by the medical facilities in the city.