During the rule of Raja Bhagsu there was once a severe drought in his capital. The local chiefs requested the king to do something or else the people would leave his kingdom. The king promised to do something this and set out himself in search of water. After about 3 days of searching he reached the Sacred Nag Dal (Lake) at a height of 18000ft. This lake was very big and had a lot of water. Raja Bhagsu used trickery to fill the water of the lake into a small vessel. He decided to spend the night there, as it had grown dark. Later in the Evening Nag the Lord of Snakes happened to pass by the lake and was shocked to find the lake empty. Following the footmarks he reached the place where Raja Bhagsu was resting. He challenged Bhagsu for a duel and defeated him in the ensuing fight. The moment the vessel containing the sacred water fell on the ground water started flowing from there. Baldy injured Raja Bhagsu prayed to Nag and moved by his prayers Nag granted him a boon that this place shall henceforth be referred firstly by the kings name and then by the Lords name and he shall become popular. Henceforth this place came to be known as "BhagsuNag". In the Beginning of the Kalyug Raja Dharamchand dreamt that lord Shiva asked him to build a temple here to bring prosperity to the area. Today it is about 5100 years since this temple was built.