Karauli district is surrounded by the Chambal River on the south east, Dholpur District on the east, Bharatpur District on the north-east, Dausa District on the north and Sawai Madhopur District on the west. It is famous for popular red-stone. It is considered to be one of the holiest city of India as it houses more than 300 temples. Karauli, also formerly spelled Karoli or Kerowlee, was part of the Matsya kingdom along with Alwar before the 11th century. It is believed that the modern Karauli was founded by Raja Bijai Pal, a Jadon Rajput noted as 88th descent of Lord Krishna, in about 995. However, some historians argue that the the princely state of Karauli was founded in 1348 by Maharaja Arjun Dev Yadav. Karauli was an independent principality; under it came under the direct rule of the Rajputana Agency in 1818.