It was fully established on 30 March 1972 via Act 69, Kemubu Agricultural Development Authority Act, 1972, launched by the second Prime Minister of Malaysia, Y.A.B. Tun Hj. Abdul Razak bin Hussein on 2 March 1973. After the inception of KADA, the Kelantan State Government then followed through by approving the Enakmen Pihak Berkuasa Kemajuan Pertanian Kemubu, 1972 (Enakmen no.2 Tahun 1972 Kelantan) allowing the Minister of Agriculture and Fisheries to execute the Kemubu Agriculture Development Authority Act 1972, that commenced on 1st August 1972.
The name Kampung Kemubu, which is situated by the bank of Sungai Kelantan, 30km away from Kota Bharu, has been mortalised in the historical development of KADA. It was there that a pump house was built to supply water to the RPK (Rancangan Pengairan Kemubu), or the Kemubu Irrigation Plan, the largest among the cluster of irrigation plans unified under the management of KADA.