According to legend, Vinayaka, the son of Shiva, established Anegabeswarar in the form a Lingam (an iconic representation of Shiva). Anegabeswarar is believed to have killed the demon Iraniyapura king Kesi and arranged for the marriage of his daughter Vallabai with Vinayaga. Kubera, the king of wealth is also believed to have worshipped Angebeswarar.
There are two Anegathangavadham temples, one in the North and one in the South. This temple is referred as Kachi Angegathangavadham to differentiate it from the northern shrine.
The word Anekapa is believed to have been derived from elephant as it drinks water with its trunk and mouth. The elephant is believed have worshipped the king.
Tirugnana Sambandar, a 7th-century Tamil Saivite poet, venerated Chandramouleeswarar in ten verses in Tevaram, compiled as the First Tirumurai. Sundarar, venerated Anegaveswarar in 10 verses in Tevaram, compiled as the Seventh Tirumurai.
As the temple is revered in Tevaram, it is classified as Paadal Petra Sthalam, one of the 276 temples that find mention in the Saiva canon. Sundarar mentions that Shiva prefers to reside at this most happening place.