Around 150 people of Kodipari, Dongasil and Chandragiri panchayats are down with fever since Tuesday, sources said.
"In absence of healthcare facilities, the villagers mostly depend on traditional healers and quacks. If the disease is not contained at an early stage the situation can become alarming," said a resident of Kasipur.
Health officials said all necessary precautions are being taken to check the menace and affected people treated in the villages by medical teams.
"Our medical teams visited a few affected villages yesterday. Blood samples of the affected persons have been collected for necessary laboratory tests," said additional district medical officer of Rayagada Siba Prasad Padhi.
"Serious patients will be shifted to the hospital. So far, no casualty has been reported in the district," he added. Claiming the situation was under control, Rayagada district Collector Sashi Bhusan Padhi said "since Kasipur is a malaria prone area, we have taken all precautionary measures to contain the disease.
Hospitals have stocked adequate medicines".