This Gurdwara is situated in Village Dhakauli which is at a distance of 1.5 Km from Zirakpur.

In 1688, Tenth Sikh Guru, Shri Guru Gobind Singh Ji won the battle of Bhangani and reached Paonta Sahib. From Paonta Sahib, Guru Ji started his journey towards Anandpur Sahib and visited Raipur Rani and Nada Sahib (near Panchkula City of Haryana State) on the way. Guru Ji reached on outskirts of Village Dhakauli. There were many followers of Sikhism in the Village because this Village was founded by Baba Gurditta Ji ( the eldest son of Sixth Sikh Guru, Shri Guru Hargobind Sahib Ji ). On hearing the news of Guru Ji's arrival, Chaudhry Ishar Das alongwith many Villagers and taking many offerings reached to have blessings of Guru Ji. Guru Ji asked about the welfare of the Village and the area.

Chaudhry requested with folded hands that there is no source of water in the Village and people have to go to Sukhna River to take water, kindly bless the Village with water. On hearing this, Guru Ji started roaming in the area, holding 'Barchha' (a pointed weapon) in his hand and at one place Guru Ji inserted his Barchha in the ground. The sweet and clean water started flowing from that place. Everyone fell on Guru Ji's feet with joy. Guru Ji gave money from his own pocket to Chaudhry and asked him to construct the place permanently. Guru Ji told them that this place would be known as Baoli Sahib.

Then one Sikh named Bhai Kirpa Ram with his wife reached there and bowed before Guru Ji. Although Guru Ji knew everything, Guru Ji asked him," How did you come here?" Since Kirpa Ram was not feeling comfortable to speak in the presence of Villagers, he said that I have come to seek your blessings. Then his wife Deesan requested to Guru Ji in low voice that I am suffering from Athrai and can not bear a child and my child dies after 8 Days or 8 Months of birth. She requested to Guru Ji to relieve her of the disease and bless her with children. Guru Ji said," On Amavas (the Waning Moon Day) or Ikadasi (Next Day to Amavas) both of you come to Baoli Sahib in the early Morning and take bath, all your problems would be solved. The couple followed Guru Ji's instructions and were blessed with son.

In the Evening, Guru Ji asked his follower Bhai Diwan Chand to recite 'Rehras Sahib' and after 'Ardas' Guru Ji went for rest. Next day in the Morning, Guru Ji arranged Diwan and recitation of 'Asa Di Vaar' was done. Guru Ji preached, gave blessings and Karah Parshad was distributed. Then Bhai Jiwan Singh Ji reminded Guru Ji about Muslim Faqir named Dargahi Shah who had helped him during his journey from Delhi to Kiratpur Sahib in 1675 and said that he has been waiting to have a glimpse of you. Guru Ji went to the place of Faqir Dargahi Shah (where now Gurdwara Nabha Sahib is situated in Zirakpur) and fulfilled his wish.