In 1937, the Princely state of Cambay (present day Khambhat) was the only feudatory state in the Political Agency of Kaira, Bombay, to merge into the Baroda and Gujarat States Agency. The name is said to be derived from khambha or stambha-tirth which was the pool of Mahadeo. During the eleventh and twelfth centuries Cambay appears as one of the chief ports of the Anhilvada kingdom. In 1298 it was described as one of the richest towns in India.
Cambay is bounded on the north by the District of Kheda (formerly Kaira), east by Kheda and Baroda and the south by the Gulf of Cambay. The west side is defined by the Sabarmati River which separates it from Ahmadabad.
According to Lieutenant Robertson’s Historical Narrative of Cambay, the Parsis of Gujarat sailed from Persia about the end of the seventh century of the eighth century. A great number of their ships foundered in a storm and only a few arrived at Sanjan, about 70 miles south of Surat. They obtained permission to land after some difficulty and on certain conditions, the chief of which were that they should speak the Gujarati language and abstain from eating beef.
The Parsis remained for many years in the vicinity of Sanjan pursuing a coasting trade. Eventually they spread over the neighboring districts and became so numerous at Cambay that they outnumbered the original inhabitants and took possession of the town. After a short period, however, they were driven out with great slaughter by the Hindus who held the territory until conquered by the Muslims in 1298.