Rural Superintendent of Police Vineet Brijlal said, "About 12 to 14 people from Ammapeta village were travelling in the country-made boat which capsized in Tanda reservoir."
Brijal said two persons swam to safety, while one body was fished out from the reservoir.
The police, with the help of district authorities, have launched a rescue operation and all efforts are being made to search the survivors, he said.
This is the second such incident that took place in the state this year.
On Saturday, Jan 30, 11 villagers drowned when a overcrowded boat overturned in Godavari river in West Godavari district.