Baoli means a very deep and large well. Here the well is flanked by small well-furnished rooms with a winding stair case. There is a small opening from top to bottom for the circulation of cool air within rooms. Viscount Valentia has recorded his stay in Baoli Palace in 1803. One of the rooms about 20 square ft had three fountains for hot and cold water supply. Shahzada Aali Qadar Taimuri also stayed here alongwith his wife during Saadat Ali Khan's time. Wajid Ali was installed as Nawab in this building. The Sangi Dalan was a stone hall built parallel to Baoli and was probably used for holding the darbars before the venue was shifted to Daulat Khana complex.