During the Vijayanagar Period (16th Century), the town of Bhatkal was a thriving port which attracted a large Jain community. It was this group of Jains, who settled in this pleasant coastal area of Karnataka, who established the Chandranatha Basti. It is a 17th Century Jain temple constructed in the Vijayanagar style. There are no longer any Jains at Bhatkal, and the temple is unused.