The fort and town of Jaisalmer was founded by Maharawal Jaisal in the year 1156 AD after he had shifted his capital from Ludharva which was 18 kms from Jaisalmer to a safer place. The ruling family of the erstwhile Jaisalmer city and town belong to Bhati clan of Yadu Rajputs of Chandrawasnshi (Lunar) race who claim to be the descent from Lord Krishna, the defied Hero who had once a time ruled Dwarka. The historical origin of Bhattis can be inferred from couplet which says that the Yadu Rajputs ruled and constructed Forts at Kashi Mathura Pravda Gajni Bhatner Digam Dirwal Lodurva and ninth in Jaisalmer. (Gajni is in Afghanistan and Dirwal is now in Pakistan).
The present district is composed of the former Jaisalmer state which was aming the Rajputana States to go Under British Protection. The treaty between Maharawal Moolraj- II and the British Government of 12 December 1818 guaranteed to the ruler and his posterity the principality of Jaisalmer. Under this treaty the ruler of the state was required to act in subordinate cooperation with the British Government.
In 1949 when Jaisalwar was merged in ti the state of Rajasthan there was no important change in the area of the state. On 06th October 1949 the region was given the status of an independent districy in Jodhpur division.