Named after Nila Nag, the son of the wise saint, Kashyap Rishi, who reclaimed the Kashmir valley, the original shape of this spring was in the circular form of a kund. In 1620, the Emperor Jahangir had the shape changed into the traditional Mughal octagonal. The spring, which has a circumference of 80m in enclosed today by a brick wall under which are vaults. These lake – like waters have a limpid clarity in which the verdant surroundings of pine trees are mirrored. Fish swim in the cool depths and this picturesque setting that so captivated the Mughal emperors has lost none of its pastoral charm over the centuries. The lawns around the spring are a beautifully manicured green, and banks of massed flowers add splashes of colour to this symphony of greens and browns. 

A Shaivite shrine just outside the complex draws pilgrims every year, who come for a ritual dip in the spring of the first day of the year according to the lunar Hindu calendar.

Some 2 km away is Veravurthur, supposed to be the source of the Jhelum. The waters of the many nearby springs, called collectively, Sapta Rishi, have their confluence at Sangam, where people bathe on festival days. The birth of the river is celebrated annually with a fair.

This complex has well appointed rooms, for which advance booking is necessary