The beautiful Rara Lake in was once a valley. One day a came to the village and begged the villagers for but a foolish gave him instead of a handful of ash.

The hermit turned back at once, going the way he had come, telling all the good people who had given him to go up the . He went up the himself and then with a blow of his hand, he broke his tumbler and the in it ran down the slope. There was an unending flow of until the village was submerged and the whole valley became a lake.

Trapped in the mountains, the water continued to rise until the newly-formed lake itself wondered whether it should seek an outlet to the east and sweep away all the of Mugu or the paddies of Achham in the south.

Now, a holy who lived in a mountain to the east of the lake knew what was going on. He said to himself that if the water came to the east, his own importance would be lost. So, he kicked at the hills in the south and made a passage for the water to flow down towards Achham. And that was how the lake came to be formed.