During the British era there were many large cotton (khadi) mills. Now Dharangaon is famous for rough cotton production.
Dharangaon was once known as Mina Nagari. At the time Mahabharata Pandav visited this place, it was known as Drongaon. Pandavs created caves to escape from their families and stay in the area. This man-made cave runs from Dharangaon to Erandol; it is still present today and in Erandol it is known as Pandav Vada.
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