Legend goes that King Jarasandha,the father inlaw of the evil minded kamsa, wanted revenge on Sri Krishna for widowing his daughters. He had marched several times with his army to wage a war against Krishna, But all in vain. Lord Krishna and Balarama would always defeat his army and send them back alive without killing Jarasandha as he was to be killed by Bhima later. On one such instance, when Jarasandha attached them, they ran to a top of a mountain and got out of Jarasandha’s sight.
Lord Krishna, In order to safeguard his citizens arrived at this place and beckoned Vishwakarma, the heavenly architect, to construct a palace in the sea. The sea god also offered the space and thus the city was buily overnight and all the yadavas were elated safety to the palace. With his celestial powers, Lord Krishna guaranteed that the sea would never cross its limit. Therefore Dwaraka and its pride were safe when Lord Krishna went for a war. This place was the primary place that he set foot so it’s called Moola Dwaraka. When arrived here, Shiva, Brahma and other devas offered prayers here. There is a deep well near the temple where Krishna had his holy bath. Even during severe drought, this well doesn’t get dried up.