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The city finds its place in the Bhagavadgita that says "I am Ananta Naga" It is also well mentioned in ancient Naga and Pichash cronicals of ancient aboriginals of the valley. Anantnag is an ancient city which came into existence as a market town around 5000 B.C. making it of the oldest urban human settlements in the whole world. It was also known by the name of Kashyapteshwara in ancient times linking it to the mythology of Rishi Kashyapa. It has one spring called Inder Spring Hydro sphere. It has two Sulphur springs and countless fresh water springs. There are about 7 temples in Anantnag  two Shiva Temples, one Radha Krishna Mandir, one Durga Temple, one Ganesh Temple, Sita Ram Temple, Hanuman Temple, four Dharmshallas and one school building. Outside the complex in the town are three temples - Ancient temples - Devibal, Shiva Temple at Nai Basti, and third at Hara Mohalla.

All three temples outside the complex were burnt and damaged by Muslim fundamentalists during riots against Kashmiri Hindus in February 1986, and rebuilt with assistance of the then Governor of Jammu and Kashmir Mr. Jag Mohan. Now both the Shivala temples outside complex are reported to have been again damaged and partially burnt by Kashmiri Militants. The district as well as its headquarter city are called by same name.[3] Regarding this second name no mention is to be found in the old chronicles of Kashmir. It is however, said that the name of Islamabad was assigned to the city by one Islam Khan who was the Governor of Kashmir during the Mughal rule in 1663 A.D., but the change in its nomenclature proved temporary and during the reign of Maharaja Gulab Singh the town as well as district again resumed their old name, Anantnag, but the name Islamabad is still popular among the common masses, though officially the name Anantnag is used.

According to ancient mythological stories, the name was derived from Anant, the serpent of Vishnu and the emblem of eternity. Anant also means numerous in the Sanskrit language and Naga means spring in the Kashmiri language. Thus Anantnag is believed to mean numerous springs, because there are many springs, including Nag Bal, Salak Nag and Malik Nag in the town. Nag Bal issues from the foot-hill of table land. Its waters are received into tanks, whose sides are built with stones and which are over shadowed by Chinar trees. Houses of worship of the adherents of three religions Hindus, Muslims, and Sikhs are built adjacent to each other near the tanks, which depicts a rare example of communal harmony between those particular faiths in the area. Another example of religious tolerance is the Mosque of Baba Dawood Khaki, which contains a small Hindu temple in its courtyard. Among the mosques of the town of Anantnag, one is built indirectly near the mausoleum of famous Kashmiri saint Rishi Malo to whose prayers the defeat of Akbar's first attempt to invade Jammu and Kashmir was attributed. The place is venerated by Kashmiris of all faiths.

Anantnag is a city of various handicrafts. Shawl weaving, Gabbah and Namdah manufacturing are the main trades. Near Anantnag three streams namely Arapath, Brengi and Sandran confluence together, thus giving birth to river Veth (Jhelum). Another stream Lidar also joins the flow with them at a little distance downstream further ahead. From this place the river becomes navigable. In olden times river Jhelum was the main source of transportation between Anantnag and other towns downstream.

 
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