There is a legend about the construction of this temple. It is said that the goddess Narmada appeared to Rewa Nayak, a banjara or nomad, in a dream. The river goddess directed him to clear the site of the present kund. When Rewa Nayak found the spot, it was covered with a dense mass of bamboo trees. He toiled hard, day and night, to clear the site.

Once he cleared the site of trees, he found a stream, which was none other than the holy river Narmada. Rewa Nayak installed an image of the goddess in a temple at this spot. His descendants later installed Rewa Nayak's image in one of the alcoves in the temple.