In 1976, the Companiganj Thana was established based in the village of Burdeo in the banks of the Dhalai River. It consisted of the current Companiganj Upazila but also included Islampur Union (Chhatak), Jalalabad Union (Sylhet Sadar) as well as Rustampur & Towakul Unions (Gowainghat). The reason for the creation of a thana was because there were no main roads leading to the town and the only access was through rivers during the rainy season. The East India Company had a strong presence in the business sector in this area and thus it was named Companiganj.