Co-operative Arts and Science College had its humble beginning in the year 1980. A few educated, unemployed and enterprising young men of Payyanur, set up a Co-operative Educational Society, under the Kerala Co-operative Societies Act,1956 to run a parallel college at Payyanur. The society gave serious thought to the establishment of a regular affiliated aided college at Madayi. The founder President of the Society Sri. M.K. Raghavan took up the proposal as a challenge. With the combined effort of all the members, the Society succeeded in fulfilling the various conditions laid down by the Calicut University. In 1982-83, the College began to function as a regular aided Junior College with two Pre-Degree batches, one in the IIIrd Group and one in the IVth Group.
Co-operative Arts and Science College, Madayi was formally inaugurated by the then Minister for Education Sri.T.M.Jacob at a ceremonial function presided over by the then minister Sri.K.P.Noorudhin on 21st December 1982. The college initially began to function in the Madrasa Hall made available by the Ahammadiyya Jama-ath- Committee,Madayi.
The foundation stone of the College building was laid by the then Chief Minister of Kerala Sri.K.Karunakaran on 7th April 1983. The College was shifted to the madayipara campus on 24th July 1985.The formal inauguration of the building was done by the then Governor of Kerala Sri.P Ramachandran on 10-2-1986. The foundation stone for the Science Block was laid on 24th April1986 by Smt. M.Kamalam , then minister for Cooperation.
The College enjoys the singular privilege of being the only aided affiliated arts and science college in the Co-operative sector in Kerala.
This college which is situated in a rural backward area serves the noble cause of educating and thus transforming the social fabric of Madayi. To empower the masses through education was what prompted the management to lay the foundation stone here. The college maintains an atmosphere conducive to academic, intellectual and physical pursuits.