Odisha became a new province on 1 April 1936, fulfilling the persistent demands of Oriya speaking people to have a state of their own, with the silver city of Cuttack as its capital. But it was only in 1948, the province became a full-fledged State with 13 districts, after the merger of the princely states. The capital was shifted in 1959 from Cuttack to Bhubaneswar, which was declared as the new capital of Odisha. And it was then; a new Raj Bhavan was constructed on a hillock, known as 'Bhalu Mundia' located on the western part of the new township.
A sprawling space of 50 acres (200,000 m2) was ear marked for the residence of the Governor. The foundation stone for the Raj Bhavan was laid by Dr. Harekrushna Mahatab. The construction was completed on 31 March 1960. The entire complex is situated in an area of 5 acres (20,000 m2) which includes the main building, the administrative block, the annexe, the office of the reserve inspector, the reception counter, the garage and the godown.
Raj Bhavan is beautifully located on a hillock known as 'Bhalu Mundia' at elevation of 1,100 feet (340 m) above the sea level. The hilly terrain of 50 Acres has been terraced into different sections. On the top of the hillock stands the magnificent main building and some portion of the land contains forest and horticulture species. The horticulture species consist of coconut, cashew, mango and some other fruit bearing plants.
The ornamental garden comprises lush green lawns, roserium and flower bed of a variety of seasonal flowers. The in-house nursery meets the major requirements of the garden. The circular lawn in front of the main building has fountain with colored lights. Decorative plants Calistropis Introtropica placed on both sides of main drive way lawn, gives a magnificent look to the garden. Raj Bhavan garden has been winning flower show prizes continuously for the last several years.