Lalitpur is believed to have been founded in the third century B.C. by the Kirat dynasty and later expanded by Licchavis in the sixth century. It was further expanded by the Mallas during the medieval period. There are many legends after its name. The most popular one is the legend of the God Rato Machhindranath, who was brought to the valley from Kamaru Kamachhya, located in Assam, India, by a group of three people representing three kingdoms of the Kathmandu Valley. One of them was called Lalit, a farmer who carried God Rato Machhindranath to the valley all the way from Assam, India. The purpose of bringing the God Rato Machhindranath to the valley was to overcome the worst drought in the valley. There was a strong belief that the God Rato Machhindranath will make rain in the valley. It was due to Lalit's effort that the God Rato Machhindranath was settled in Lalitpur. Many believe that the name of the town is kept after his name Lalit and pur meaning township.
Lalitpur said to have been founded by King Veer Deva in 299 A.D. but, there is unanimity among scholars that Patan was a well established and developed town since ancient times. Several historical records including many other legends also indicate that Patan is the oldest of all the cities of Kathmandu Valley. According to a very old Kirat chronicle, Patan was founded by Kirat rulers long before the Licchavi rulers came into the political scene in Kathmandu Valley. According to that chronicle, the earliest known capital of Kirat rulers was Thankot. Kathmandu, the present capital was most possibly removed from Thankot to Patan after the Kirati King Yalamber came into power sometimes around second century A.D.
One of the most used and typical Newar names of Patan is Yala. It is said that King Yalamber or Yellung Hang named this city after himself and ever since this ancient city was known as Yala
