An interesting legend given in the Gazetteer of talukas, towns, important villages, rivers and hills published by the Gazeteers department of Government of Maharashtra states:

As per Skanda Purana, a demon named Lonasur who lived in a subterranean abode used to devastate the surrounding country and even challenge Gods. Lord Vishnu, on an appeal by the people of the region, assumed the form of a handsome youth named Daitya-sudan, charmed the giant’s two sisters and discovered the giant’s abode and then removed the lid of the den where he was hiding and destroyed the giant. The present lake is claimed to be the den of the giant, and a conical hill near the village Datephal, some 36 miles to the south-west, is said to be the lid of the giant’s den. The water of the lake is likened to the blood of the giant and the salts that it contains as the decomposed flesh of the giant. It is also believed that a perennial spring, at the head of the path which leads down to the lake is linked to the Ganges river.