A huge water tank that takes the shape of an island surrounds Shri Siddheshwar temple. The legend surrounding the construction of the temple is, a great saint Shri Siddharam, who preached the teachings of Shri Basaweshara. A young girl, inspired by the teachings of this saint, was eager to marry him. But, Shri Siddharam being a brahmachari himself, declined to marry her, but gave permission to the girl to marry his Yogadanda. This very marriage function is celebrated every year on the Makar Sankranti for three days on Bhogi, Sankrant and Kinkrant. The Nandi Dhwajas are presumed to be the bride and groom of the marriage. The festival coincides with 14th January every year. A fair known as Gadda Jatra is arranged for 15 days during this period.

Lord Siddheshwar was born in the family of Adrishir and Urdhvashir. In fact, they were abused by Bhrungishwar and, therefore were born on earth.They were only released from their curse only after the birth of Siddheshwar. Adrishir and Urdhvashir were born in the city of Sonnalgi (Solapur) and got married. They called their child `Dhuli Mahankal`. Siddharameshwar was the pilgrim of Mallikarjun. Siddharameshwar went to Shrishail to meet his guru, but Mallikarjun asked him to go to Sonnalgi and establish lingas. Thereafter Siddharameshwar returned to Sonnalgi and constructed 68 lingas. Siddharameshwar also released Raudramahakal, Meghchud, Yatihanse and Mayurak from abuse. He was the person to make the lake, during which time all the holy rivers collected there and requested the permission to live in that lake forever. Hence, this lake has become holy for every human being in the years to come.