History of Shajapur district dates back to the period of Shah Jahan. Observing the natural beauty of this area, the army of Shah Jahan decided to take a halt here. This place was previously known as `Khankarakhedi`. Shah Jahan and his fauj or army liked this place very much and therefore when Shah Jahan became the Samrat or Emperor, he considered the importance of this place for his southern campaign. In the year 1640, Meer Bigo was appointed here as Kotwal. He, with Shri Jagannath Rawal prepared four dwars or doors in four directions and in the centre of the district of Shajapur, they developed a marketing centre.

Accordingly, the Shajapur district was populated and converted in a large colony and surrounding this place a wall was prepared. Then in respect of King Shah Jahan it was named as `Shahjahanpur`. In Shahjahanpur twelve areas were situated which include Magriya, Dansi, Mahupura, Muradpura, Kamreedpura, Vajeerpura, Lalpura, Mugalpura, Dayra, Juganbadi, Golyakhedi and Meerkala. Muradpura was named after Shahjahan`s son and Muradpura and Meerkala were named after Meer Bigo himself.

It is said that the Chadralekha River, which is now Chiller River, was flowing in the Northern direction before. However, after the establishment of huge fort and for its safety it was brought from East as a Parikha of the fort. So at the time of Shahjahan (1628-1658); Jama Maszid, so many temples etc. were developed in the district. He was very satisfied with developments and he honored Shri Jagannath Rawal by giving Jaigir of Moja magariya. But at the time of Aurangzeb (1656-1707), this area was totally ignored. After the downfall of the Mughal dynasty, Shahjahanpur District was brought in the Scindia state in the year 1732, and so many administrative changes were performed. The name `Shahjahanpur` has now become Shajapur. There is a beautiful palace in the fort which was also developed by Tarabai. The district of Shajapur was formed in the year 1904. The district of Shajapur forms a part of the Central Madhya Pradesh Plateau - Ratlam plateau Micro region as per the present scheme of regional delineation. This district is located in the northwestern part of the Madhya Pradesh state.