When Sri Guru Nanak Sahib Ji visited here the river Sutlej, which was close by, would regularly flood the city.

Jalaluddin, the older brother of Sultan Ibrahim Khan Lodi, paid homage to Guru Nanak and asked him to save the city from further floods.

Guru Nanak said that if Jalaluddin served his people with good justice the river would move miles away and the city would prosper.

As there was a nearby Gau Shala the name of the Gurdwara became Gurdwara Sri Gau Ghat Sahib.