Santokhsar and the adjoining Gurdwara. Tahli Sahib is situated in the heart of the city, near the Town Hall. There is a shisham (tahli) -tree under which Guru Arjan Dev used to sit. Santokhsar is one of the biggest tanks in Amritsar. Its digging was started by Guru Ram Das in 1570 and was completed by Guru Arjan Dev in 1588.
According to a tradition, once in 1584 a man, named Santokha, came to Guru Arjan Dev to seek his blessings. He was a rich man and was issueless wanted to be blessed with a child. He offered 250 gold mohars to the Guru who spent the amount on the excavation of the tank and named it Santokhsar after Santokha. According to another tradition, while the digging of the tank was in progress, a math was found underneath. When its door was cleared, a yogi Santokh Das by name was found sitting there in the Samadhi pose (in meditation). When brought to consciousness, the yogi told Guru Arjan Dev that was a religious centre even in the Duapar Yug and the name of the place was 'Amritsar'. He beseeched the Guru to bless him, as he was waiting for him to come to this place in order to revive its ancient importance. As the Guru blessed the yogi, he left for his heavenly adobe. The tank was, therefore, named Santokhsar after him.