Located between two steep hills, the rock ledge endowed with spectacular water falls, Bhemmuni Kolanu is the place through which the ancient foot path of Srisailam from the Southern and Western sides pass. This pathway with excellently laid steps of solid stone slabs can be seen even today which are beginning from Nagalooty, a temple complex, in the dense forest.
Traditionally this place is said to have acquired its name through an epic episode. According to that story the Pandavas during their pilgrimage while in Vanavasam came to this place. At that time Draupadi was feeling with thirst and they could not find water any where in the vicinity. Due to this Bheema got angry and hit the hill with his mace. As a result the hill was split into two parts and water came up from its middle and later the stream named as Bheemuni Kolanu.
Pleased by this flow of water, Bheema is said to have consecrated a Sivalinga at the place which was referred in Skanda Purana as Bheema Linga and the spring as Bheema Gundam. At present there are two dilapidated temples which are locally known as Bheemeswara and Bheemunikolanu temples and both are datable to 8th-10th centuries A.D.
At the top of his ascending 850 steps from Bheemuni Kolanu, there is another place called Kailasa Dwaram. The pilgrims after excruciating sojourn through step hills and valley, when finally reaches the plenty surface, they get the feeling of Kailasa i.e., Srisailam and hence named as Kailasa Dwaram.