Vadnagar sprang up along the banks of the Kapila River, which also supplied water to the Sharmishtha Lake, which is where Vadnagar now stands. It was a significant cultural hub that grew at the crossroads of Gujarat, Saurashtra, Malva, and Rajputana.Sharmishtha Lake is a large body of water near Vadnagar that offers plenty of opportunity to relax on its shores. It is believed that the lake dates back thousands of years. The waters of the Kapila River, which flowed down from the Aravallis, built it.
The history of this lake can be traced back to the time of Mahabharata mythology and historically to the second half of the tenth century. There is a story in Skandapuran in which a daughter was born to Somvanshi Vrikaraja, who was known as Vish Kanya. So the king abandoned him. The bride came to Shiva Totra, Hatkeshwar Ghotra and became sinless, the goddess was impressed by her penance and after digging a lake at this place, she built a temple of Goddess Shakti which became known as ``Sharmishtha Tirth``. It was re-opened by Anartaraja Skanda Swami in the time of Shankhamuni.

Historically, Durlabharaj re-opened the ``Sharmishtha`` lake in Vadnagar as an experiment. The canal was diverted from Sabarmati to a lake called Shankh Tirth-Vishwamitra Tirth on the east side without bringing the canal water directly into the lake as the water from the Sabarmati lake would not harm the habitat of the pilgrims and clean water would be available to the townspeople. Then the water from the lake enters the Nagdhara-Nag Tirth in another lake rather than silt and waste. And then from that lake to the stone walls, according to the plan made, the third lake would go to Sharmishtha.

Thus, after the success of planning Vadnagar as a first experiment, it seems that Sahasrlinga has been prepared by arranging closures, garnalas etc. Siddharth may have had the honor of constructing Sharmishtha Lake Patan, but it was actually built by Durlabharaja in the latter half of the tenth century. Siddharth Raj had reopened it ओ. In the middle of this lake with stone walls and three hundred and sixty steps, there are Bakshal, Paka Ara-Owara and a few temples on the shore. The northern, southern and western boundaries of the lake touch the city. The city begins with a roundabout where both ends meet. When the saber water fills up in Sharmishtha Lake, the excess water comes to the ``river gate`` at the northwest corner.

The present Vadnagar is situated on a high hill in a semi-circle around Lake Sharmishtha on its eastern boundary. Abu Fazl (16th century AD) has mentioned in his book 'Aine Akbari' that there was once a huge population around this divine city. He also mentions having Sharmishtha Lake in the center of the town.

Archaeological excavations have revealed the remains of the ancient Vadnagar east of present day Vadnagar scattered around the lake. In Shripal Prashist on Arjunbari, the reservoirs of Viprapur (Vadnagar) (Sharmishtha Sarovar etc.) satisfy the people with water. It is mentioned.