Parmeshwar Tal's history is intertwined with the rulers of Chanderi. It is believed to have been commissioned by the Bundela Rajputs, who controlled the region for centuries. The lake served as a crucial water source for the city and surrounding areas. Over time, it became a significant landmark, witnessing the rise and fall of dynasties. While specific details about its construction are scarce, local legends and historical accounts suggest that the lake was named after a local deity or a prominent figure of the time. Today, Parmeshwar Tal stands as a testament to the region's rich heritage and the ingenuity of its past rulers in managing water resources.