Korporasi Pembanguna Desa (KPD) or Rural Development Corporation (KPD) was established in 1976 as a cooperative society known as Koperasi Serbaguna Pembangunan Desa Berhad or Rural Development Multipurpose Co-operative Limited.

In 1977, the state government re-enacted the Rural Development Corporation Act 1977 to establish KPD one of the state statutory Bodies under the purview of the Chief Minister's Department.

In 1981, the Rural Development Corporation enactment 1977 Enactment was replaced with the Rural Development Corporation enactment 1981 making it a project implementing agency on rural development programmes under the Ministry of Agriculture and Fisheries (now known as “Ministry of Agriulture and Food Industry”).