As of 2001, the town coverered an area of . Out of the total area, 88 per cent of the land constituting is marked developed and the remaining area is used for agriculture and remains under water. Residential areas make up 55 per cent () of the town's total area while commercial enterprises and industrial units make up 5 per cent () and 1 per cent () respectively. As of 2008, there 31 notified slums having 3,954 houses in Chidambaram and a total of 17,102 people constituting 30 per cent of the total population lived in them. The municipality maintains the water supply and garbage collection of all these slums. As of 2001, nearly 5,000 people constituting 10 per cent of the population were below the poverty line.