It is said that in ancient time, when religious persons and saints used to perform meditation, a cow named Kapila, used to come and participate in function here. One time, Lord Shiva came down to earth at the function and as a result, the temple is called as Kapileshwar. An inscription in the temple says that in 16th century, the temple was rejuvenated by
Ahilyabai Holkar (one of the famous queens of India).
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