According to the Imperial Gazetteer of India:
"The present town is of modern origin, the old town, which may have been the Bucephala of Alexander having been, on the left or opposite bank of the river. Under Sikh rule the place was quite unimportant, being mainly occupied by a settlement of boatmen, and at the time of annexation contained about 500 houses. It was then chosen as the site of a cantonment and as the head-quarters of the civil administration. For some years it was the seat of the Commissioner of the Division, but in 1859 his head-quarters were transferred to Rawalpindi. Under British rule Jhelum has steadily advanced in prosperity; and is the entrepôt for most of the trade of the District, though, since the completion of the Sind-Sāgar branch of the North-Western Railway; the salt trade no longer passes through
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