Almost all gurudwaras in the holy city is constructed on the banks of some sacred tanks. These tanks are considered to be as pious as that of the shrines. Gurudwara Mata Kaulan also is located on the pristine banks of a tank by the same name Kaulan. Both the tank and the gurudwara shares remarkable significance in the history of Sikh Religion.
History says that, Kaulan was a pious girl who desires to follow the path of religious line to which her family was not amenable. Severe punishments and harsh treatments failed to dissuade her from the chosen path and she left her home to seek out asylum with Guru Hargobind. Gurdwara Mai Kaulan is the same house where the devout girl lived. Now it is a revered place, where large number of pilgrims frequents to pay their respect and offerings.