The history of the temple dates back to 18th century. Legends say that the goddess Pydimamba belonged to the Gajapati Dynasty and that she was the sister of king Vijaya Rama Raju. During 1756 the king of Vizianagaram had a constant rivalry with the king of Bobbili. Taking the help of French army, led by General De Bussy, Vijaya Rama Raju set out an invasion on Bobbili which led to the "Bobbili Battle" on 23rd January 1757. Many Bobbili soldiers were killed and the Bobbili fort was almost destroyed. During that battle the wife of king Vijaya Rama Raju and his sister, who was suffering from Masuchi (a disease), tried to convince him to avoid war. His sister, Pydimamba, was performing a pooja while she came to know that his brother was in trouble.
So, she wanted to enquire about his whereabouts and tried to convey a message to him through a soldier named Patiwada Appala Naidu. On Vijaya Dasami (a famous Hindu festival), she got the news that Vijaya Rama Raju was killed by Tandra Papa Rayudu. Listening to that she was fainted and fell ill. She told that she could not live anymore and her soul would join goddess Durga. Soon after, she passed away and the next Tuesday villagers found an idol of her at the western part of Pedda Cheruvu (lake), where the temple is constructed. Also, her statue is erected near the lake.