The lake was built by creating in 1794 to beautify the city. The construction was commissioned by Chote Khan, a minister of Nawab Hayat Muhammad Khan Bahadur A number of earlier wells were merged in this lake.
The bridge that separates the Lower Lake and the Upper Lake is called "Pul Pukhta" or Lower Lake bridge. The lower lake has also been mentioned as "Pukhta-Pul Talao" in literature.