The state was founded in/around 697 by Kahal Chand. Kahal Chand had built a fort, which was named after him, and was called Kahlur Fort. Another ruler of the state, Dip Chand founded the city of Bilaspur, and made it his capital. The state was acceded to India on 12 October 1948.
Most of the Rajputs in Bilaspur are Chandias, that is they belong to different branches of the ruling family. These families are numerous, and all enjoyed jagir pensions from state amounting in aggregate to Rs. 40,000 a year in 1933. They are called 'the Mian families', and the chief names are:
Hutchinson, J. & J. PH Vogel (1933). History of the Panjab Hill States, Vol. II. 1st edition: Govt. Printing, Pujab, Lahore, 1933. Reprint 2000. Department of Language and Culture, Himachal Pradesh. Chapter XIII Bilaspur State, pp. 494–518.