As mentioned in the Puranas, Kusasthali is the capital of Anartta, which was part of Kutch of Gujarat. It appears that Kusasthali was the older city, upon which the city of Dwaraka was built during the reign of Vasudeva Krishna.

In a mythical story it is said that Yadavas from the terror and panic of Jarasandha, the Magadha king left Mathura and ran away to the city of Dwaravati. Later they fled towards more wests.

There was a pleasant city in the west called Kusasthali. In this city, the Yadavas settled to build a fort and made it so strong that it became indestructible. The fort was built in a manner so that even the women might fight the foe.

In Kusasthali Vasudeva Krishna dwelt here. Again, at Kusasthali was held an assembly of the Devas. Kuvera came here surrounded by three hundred Yakshas carrying various weapons.

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