Local legend has it that Tanjung Benoa was originally made up of separate islets called Nusa Dua and Terora. During this time, Bali was ruled by a powerful general by the name of Kebo Iwa who was revered by his loyal subjects. His incredible strength enabled him to protect Bali and is inhabitants from the conquering forces of the mighty Majapahit Empire.

When Kebo Iwa learnt that the people of the south were facing difficulty accessing the rest of the island, he collected two giant scoops of earth from the areas of Kutuh and Sawangan to cover Tanjung Benoa. He secured the soil using a tree, which subsequently snapped and scattered earth over what is now Nusa Dua. A second attempt also failed creating another new area called Terora – the very same site where Taman Bhagawan sits today.