Bhimanakatte Sri Kshetra owes its origins to the times of Pandavas in Dwaparayuga. Tunga Mahatmya  in Skanda Purana narrates the background of how Bhimanakatte came into existence.

When Pandavas were doing Vanavas on the banks of Tunga river, Draupadi requested Bhimasena to build a dam so the River Tunga is diverted for her bath. Bhimasena made a promise to Draupadi that by the time of rooster’s first call at day-break he would complete the construction of a dam. Sage Durvasa, who had an Ashram in the region came to know of this vow by Bhimasena which was detrimental to the dwellers. He requested Lord Krishna to intervene. Accordingly Lord Krishna turned into a rooster and gave out a call much before the day-break. As a result Bhima could not complete his promise. Lord Krishna and Sage Durvasa appeared before surprised Bhima and appraised him of the consequences of his actions. Even to this day, the incomplete dam can be seen here. The place acquired name of Bhimasetu and came to be called Bhimanakatte in Kannada. It is said that, taking a dip here in Tunga in the erstwhile Bhuvanagiri being equel to taking a dip in the confluence of Ganga, Yamuna and Saraswati at Prayag Kshetra.