Pondicherry was the capital of the former French territories in India. Besides Pondi itself - acquired from a local ruler in 1674 - these included Chandernagore in Bengal (1690); Mah?in Kerala (1725); Yanam in Andhra Pradesh (1731); and Karaikal in Tamil Nadu (1739). Chandernagore was returned to India three years after independence; in 1951; and was absorbed into West Bengal. Returned to India in 1956; the remaining four territories were constituted as the Union Territory of Pondicherry in 1962.

Today Karaikal; Yanam and Mah?are all small seaside resort towns; known chiefly for their cheap beer made possible by Pondicherry's light alcohol taxes. Karaikal; on the Coromandel Coast 100 kilometres south of Pondicherry; is similar to rural Pondi - a prosperous; Tamil-speaking enclave renowned for the abundance of its rice harvests. Yanam; located on the coast of Andhra Pradesh more than 600 kilometres north of Madras; is a tiny; Telugu-speaking town on a branch of the Godavari River. Mah? on the Malabar Coast of northern Kerala is a quaint; picturesque town; named for its founder; Count Mah?de La Bourdonnais.

In September 2006; the territory changed its official name from Pondicherry to the vernacular original; Puducherry; which means 'New village'.