Gurdwara Budha Sahib was situated in the old Bilaspur City, Himachal Pradesh.
Guru Tegh Bahadur used to live at Bakala and had spent more than seven years (1656-64) in Assam, Bengal and Bihar. Guru Tegh Bahadur had spent some time at Talwandi Sabo and Dhamtan too.
In the middle of April 1665, Guru Tegh Bahadur made a visit to Kiratpur Sahib. When Guru Tegh Bahadur was still at Kiratpur, on 27th April 1665, Raja Deep Chand, the ruler of Bilaspur, died.
The Bilaspur ruler was a very devoted Sikh. On 10th May 1665, Guru Sahib went to Bilaspur to make last prayers for Raja Deep Chand. Guru Sahib stayed there till 13th May.
By this time Rani Champa had come to know that Guru Sahib had decided to move his headquarters to Dhamtan. This made Rani Champa despondent. Rani Champa approached Mata Nanaki (Guru Sahib's mother) and begged her to ask Guru Sahib not to move far away from Bilaspur State.
Mata Nanaki could not resist helping a sentimental Rani Champa. Mata Ji requested Guru Sahib to fulfil Rani's desire. When Guru Sahib agreed, Rani Champa offered to donate some land to Guru Sahib so that he might established a new town. Guru Sahib decided to set up new town but refused to accept a donation of the land.
The site of the city of Anandpur Sahib on the lower spurs of Shivalak hills, was purchased by Guru Tegh Bahadur on a payment of rupees five hundred. Guru Tegh Bahadur selected a piece of land in between the villages of Lodipur, Mianpur and Sahota and paid regular price for the same. Rani Champa hesitatingly accepted the price of the land but her joy new no bounds at the thought that Guru Ji had chosen to establish his headquarters near Bilaspur State.
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