A Charming Spot : Kolhapur has a peculiar cultural influence owing to various ancient temples. Formerly, other deities were established around central Mahalaxmi for her protection Siddha Batukeshwar in the east, Tryamboli in the west, Jyotirling in the north & Katyayani to the south. This Deity is mentioned in the 'Karveer-Mahatmya.'
In ancient times the Demon Kolhasur had kept Demon Raktabeej for the protection of this area. In the mean time, Mahalaxmi declared war against Kolhasur and sent Bhairava to suppress Raktabeej. But as soon as he was struck, many demons began to be created out of his blood. So Bhairav was powerless. Then Mahalaxrni at once sent Katyayani who made 'Amrut Kund' (Nectar tank) and kept in it illusionary demons born of blood. Again rejuvenating Bhairav's army, Katyayani destroyed Raktabeej. So goes the mythological story.
It is found from historical records that Chhatrapati Shahu, Rajaram and Akkasaheb Maharaj used to visit the temple, on hunting campaign. This temple proves a pleasant relief for Kolhapur citizens tired with the dull, daily drudgery of life.