Paralimni has become the main commercial centre of the the Famagusta area since 1974. It lies within what is known as the "Kokkinochoria", the red villages. It is a prolific potato producing area because of the fertile soil.
The main square has three churches and provides the main focal point of the town.
The name of the town means by the lake and came about because of the lake that formed when there was heavy rain. The lake was seasonal and evaporated completely by summer arrives. These days the area is irrigated and so the lake no longer forms.