Taudaha Lake is believed to be a remnant pool of the huge lake that once existed where now the city of Kathmandu sits. According to mythology, a Buddhist mythical character Manjushree cut the hill in the valley's south, allowing the lake's water to drain off, thereby creating land that was duly occupied by people. After the water of the ancient lake drained away, a few small lakes and ponds were created beyond the hills. Taudaha is believed to be one of those ponds. The lake is a stop over for numerous migratory bird species such as cormorant, ruddy shelduck, serpent-eagle and common teal.