The territory comprising the present district of Balangir was in ancient times a part of the South Kosala . According to tradition, the origin of South Kosala dates back to the time of Rama and scholars like Pargiter believe that Rama's long stay in that region gave rise to the name of South Kosala after his original homeland Kosala. According to Padmapurana, the kingdom of Kosala, after Rama, was divided between Lava and Kusa, his two son. Later Kusa founded the city of Kusasthalipura and ruled over the southern half of Kosala (that included modern day Western Odisha and Chhattisgarh State).