Bilaspur was the capital of a state of the same name founded in the 7th century, also known as Kahlur. The ruling dynasty were Chandela Rajputs, who claimed descent from the rulers of Chanderi in present-day Madhya Pradesh. The town of Bilaspur was founded in 1663. The state later became a princely state of British India, and was under the authority of the British province of Punjab.
On 13 May 1665, Guru Tegh Bahadur went to Bilaspur to attend the mourning and funeral ceremonies for Raja Dip Chand of Bilaspur. Rani Champa of Bilaspur made an offer to the Guru of a piece of land in her state, which the Guru accepted at the cost of 500 rupees. The land consisted of the villages of Lodhipur, Mianpur, and Sahota. Guru Tegh Bahadur broke ground on a new settlement on 19 June 1665, which he named Nanaki after his mother.
In 1932, the state became part of the newly created Punjab States Agency, and in 1936 the Punjab Hill States Agency was separated from the Punjab States Agency. On 12 October 1948 the local ruler, HH Raja Sir Anand Chand, acceded to the Government of India.
Bilaspur became a separate state of India under a chief commissioner, and on 1 July 1954, Bilaspur State was made a district of Himachal Pradesh state by an act of the Indian Parliament. When the Sutlej River was dammed to create the Govind Sagar, the historic town of Bilaspur was submerged, and a new town was built upslope of the old.
Amidst the huge, gigantic peaks of Himachal Pradesh rests the cultural conurbation, Bilaspur. The town is blessed with picturesque beauty in plenty. Believed to be founded in 1663, Bilaspur is the first planned hill town of the country. The hill town is stationed on the boulevards of river Satluj. The Charm of this district provides the experience of an indispensable beauty in the lap of the nature.
Bhakra Dam in Bilaspur holds the distinction of being one of the highest gravity dams in the world. The dam was the vision and mission of our 1st Prime minister, Jawaharlal Nehru. Bhakra dam is the world's biggest multi-utility project and is the source of irrigation and electricity for millions. The dam is also responsible for the creation of the most beautiful lake in Himachal Pradesh, Gobind Sagar Lake. The eye-catching Gobind Sagar lake is famous for sightseeing, adventure activities, recreational fun, etc. The lake is a treat for nature lovers and adventure junkies.
Another worthy aspect is the wildlife of the district which is truly amazing and home to some endangered animals like Panther, Wolf, Chausinga, Sambar, Hyena, Sloth bear, Nilgai, Chinkara and wild boar. One can see all these animals on the bank of Gobind Sagar lake. In 1962, the lake was even recognized as the 'waterfowl refuge.'
Nearby Bilaspur there are many sacred temples and caves. Vyasa Cave, the pious point where Saint Vyasa meditated is one of the famous tourist spots of Bilaspur. It is also said the name of the city (Bilaspur) has been derived from the name of the cave itself. Markandeya Ji and Naina Devi Temple are the two other important temples of Bilaspur. Naina Devi temple is one of the most significant 'Shakti Peeths' of India and was built by Raja Bir Chand. It is belived that the Goddess Sati's eyes fall here, and consequently the temple was built. Within the vicinity of the district of Bilaspur, there are some famous contributions of Raja Bir Chand namely Sariun Fort and Kotkahlur Fort.