Anandpur Sahib was founded in the year 1665 by the ninth Sikh Guru, Guru Tegh Bahadur, near the ruins of an ancient place, Makhowal. On May 13, 1665, Guru Tegh Bahadur went to Bilaspur to attend the mourning for Raja Dip Chand of Bilaspur State. The Dowager Rani Champa of Bilaspur offered to give the Guru a piece of land in her state. The Guru bought the site on payment of five hundred rupees.
The land consisted of the villages of Lodhipur, Mianpur and Sahota. Here on the mound of Makhowal, Guru Tegh Bahadur raised a new habitation. The ground was broken on 19 June 1665, by Baba Gurditta Randhawa. The new village was named Chakk Nanaki after the Guru's mother, Nanaki. The place later came to be known as Anandpur Sahib.
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