Chashma Shahi ("Royal Spring") received its name from its water source, a spring located on its uppermost terrace. The garden, one of the smaller Kashmiri gardens around Dal Lake, is found on the southeastern side of the lake.
Chashma Shahi was built by the Mughal governor Ali Mardan Khan under the emperor Shah Jahan in 1632-1633. It is said that this date is derived from a verse found on the site: "Guftamash bahr-i chashma tarikhe/ Guft bar go kausar-i shahi," which translates to, "I enquired of him regarding the date of the spring/ He replied: Say 'Kausar-i Shahi'." The term "Kausar-i Shahi" is synonymous with Chashma-i Shahi (the royal spring). Calculating this term in the 'abjad' system yields the hijra year 1042, or 1632-33 CE.
Two baradaris (pavilions) were originally found on the site, one on the second terrace and the other enclosing the spring on the third terrace. While the term "baradari" literally means "twelve doors," from the Persian summerhouses with twelve archways to let in breezes, it also indicates a garden pavilion.
Currently, only the baradari on the third terrace remains; that on the second terrace was removed. Chashma Shahi is found just to the north of Pari Mahal, a garden palace, and south of the Nishat Bagh, another Mughal garden. Chashma Shahi is laid out as a rectangle, measuring 108 by 38 meters along a north-south axis. While numerous sources say that the site has been enlarged since its inception, no specific information is available. Its southern side marks its highest point of elevation and the source of the garden's water.