Champaner was established by the Chavda dynasty's King Vanraj Chavda and named after his minister Champaraj. Some claim the name comes from the champak flower because the light yellow colour of the igneous rocks in this region is close to that of the flower. The Khichi Chauhan Rajputs built the fort of Pavagadh just above Champaner, which was later captured by Mahmud Begda. He made this his capital, naming it Mahmudabad, and reconstructed and decorated it over the course of 23 years. The capital was later moved to Ahmedabad during the Mughal rule, and Champaner lost its glory and significance.