The legend is that there was a Brahmin called Brahmavatta Sudeva with his wife Sudeha. Though otherwise happy they did not have a child. So, on advice from Sudeha, he married her sister Ghushama.
Ghushama was a devotee of Lord Shiva. She used to worship the Lord daily with 101 Shivalinga at a nearby lake. In due course Ghushama gave birth to a child; this made Sudeha jealous.
One night Sudeha killed the child while on sleep. That was a shock to Ghushama but she went to the lake and offered prayers as usual.
This devotion, even after facing a tragedy, pleased Lord Shiva. He appeared before Ghushama. Explained what had happened to Ghushama and gave re-birth to her child.
On request from Ghushama Lord Shiva took abode there.
The temple is very close to famous Ellora caves. It is 27 kilometers from Auranagbad.
Pune-the nearest major city that is 240 kilometers far.