Mudalagi is a town situated on the north east side of Gokak city in Gokak Taluk. It is a totally irrigated area and is basically an agriculture-based town. Mudalagi is very famous in animal market in Kannada Dhanagala Sante and is also famous in sugarcane farming. Mudalagi falls into the Arabhavi assembly constitution. The Town Panchayat Council Mudalagi was established during the year 1949. The government of Mysore awarded the First Prize to the Local Body as the Best "TPC Mudalagi" in the state for the year 1962-63. The TPC Mudalagi was converted into the Town Municipal Council during the year February. It is famous for cattle market in the state.