Kolhapur , formerly known as 'Karveer', is famous as a place of pilgrimage, being the abode of the Goddess Mahalaxmi (Ambabai). The Karveer section of the famous 'Padmapurana' sings the praises of this settlement. Not surprisingly then, Kolhapur is also known as 'Dakshin Kashi', meaning ‘ Varanasi of the South’.

Legend has it that ages ago the Goddess Mahalaxmi (Ambabai) alighted on a mount with the help of her mace during a flood. Thus the town founded there came to be named 'Karveer'. Graham, a European historian, has specially mentioned this story in his works.

Another legend says that the Goddess Mahalaxmi (Ambabai) defeated the demon Kole and slayed him outside the town. Thus this town was named as ‘Kollapur’. The present name ‘ Kolhapur ’ is a corrupted form of the word ‘Kollapur’.