Lord Krishna and Yadavas leave Mathura and arrive at the sea-coast of Saurashtra and they decide to build capital city on the large coastal area. They invoke god Vishwakarma, the builder of cities. Vishwakarma tells them the city of Dwaraka could be built only if the sea god dedicate some of his land. Lord Krishna then invokes the sea-god. The sea-god is pleased and dedicates 12 ‘Jojan’ land. The gold city of Dwaraka is built on the land. The city also comes to be known as Daravati and Kushasthali.

According to another myth, when Lord Krishna got injured by an arrow of a hunter at Bhalaka Tirth near Somnath at the fag end of his life and left his mortal body at the “Triveny Sangam” (The meeting place of three rivers or revaluates), the ancient city of Dwaraka sunk in the belly of the sea.