It is said that the Peshwas use to go in a boat ride with their advisors to discuss the military strategy against the Nizam and British empire. The boat used to travel by this lake (where Sarasbaug is today) and the boats were steered by non-natives like Africans or deaf people to maintain the complete secrecy.
The lake had an area of about 25 acres. Even today there is a small pond in the garden around the temple. With a beautiful garden around, this is one of the favorite picnic spots for Punekars.