According to folklore, Bhopal was founded in 11th century by the king Raja Bhoj (Panwar). Who ruled from his capital at Dhar. This theory states that Bhopal was originally known as Bhojpal after a dam (pal) constructed by the king’s minister. No archaeological evidence, inscriptions or historical texts support the claim about an earlier settlement founded by Bhoja at the same place, although the Bhojpur Temple is 28 km from Bhopal. An alternative theory says that the city is named after another king called Bhupala (or Bhupal).
Bhopal became a Princely State after signing a treaty with the British East Indian Company in 1818.