After the construction of Taran Taran the Guru selected Doaba as the next preaching centre.
In Doaba there lived many devoted Sikhs of the Guru. Those Sikhs served the Guru with great zeal. They were very pleased that Guru himself had visited Doaba.
The Sikhs of Doaba requested the Guru that a new city should also be established at Doaba so that preaching of Sikhsim could be accelerated more vigorously.
One day when Guru Arjan Dev was staying at village Dalla, Nazim Khan Nawab of Jalandhar arrived there to pay homage to the Guru. He belonged to the family of Allayaar a devout Sikh of Guru Amar Dass.
He listened to the sermons of the Guru and took meals in the common kitchen. He was very happy to see such a holy and virtuous atmosphere.
When the Guru was free, he wanted to have a dialogue with the Guru. The Guru welcomed him and asked him to sit near.
At the time of departure Nazim Khan said, 'You should construct a town near Jalandhar, where it may become easy for the people of Doaba to hear your sermons. I have a piece of land near Jalandhar, if you want to construct a town I can donate it to you.'
The Guru replied, 'It is not possible to construct a city on the donated land, but if you sell the land, I may construct a new city.'
Nazim Khan agreed and the Guru bought the required land.
The Guru laid the foundation stone of Kartarpur in December 1594. It is said that instead of fixing a branch of a tree as the foundation stone, a tree itself was entombed. That is called as ‘Thamm' and at Kartarpur a very beautiful Gurdwara ‘Thamm Sahib' has been built at that spot.
After construction of some residential buildings, the Guru dug a big well named as Gangasar. The Guru told the people of that area that water of Gangasar was more pious than the water of Ganga. So Instead of going to Ganga they should take bath in the water of Gangasar.
Construction work of the buildings was in full swing. The Sikhs from far and near had thronged to serve the cause of the Guru.
After staying for few months Guur Arjan Dev appointed Bhai Kalyan and Bhai Bhakta as the supervisors and himself returned to Amritsar.