Under the aegis of the British East India Company, Katwa became an urban settlement, encouraged by the presence of missionaries such as William Carey Jr., the son of William Carey. By the 1800s, Katwa had become a thriving trading town with the principal economic activity being the riverine trade in salt. The modern town of Katwa was established in 1850, when it was granted the status of a subdivisional town under the 10th Act of Municipal Rules. The Municipality of Katwa as a governing entity was established on 1 April 1869. The urbanization of Katwa received a further boost with the construction of railroads in the early 20th century: Katwa-Azimganj (constructed in 1903), Katwa-Bandel (1912), Katwa-Bardhaman (1915), Katwa-Ahmedpur (1917).