By going to the lowest hill in the southern part of the valley and slicing a portion of it with his Sword Of Wisdom, he drained the lake, thus creating the Chobar Gorge (which till today drains the rivers of the Kathmandu Valley). The valley with its fertile soil appeared, and Manjushree proceeded on his mission to worship the Swayambhu, which had rested upon the small hillock of present-day Swayambhu.
Manjushree is then said to have founded the city of Manjupatan, which was located midway between Swayambhu and Gujeshwori (near what is today the Kathmandu airport), and proclaimed his disciple Dharmakarma as the ruler of that city. It was also during this era that Krakuchanda Buddha, Kanak Muni Buddha and Kashyapa Buddha visited the Kathmandu valley to worship Swayambhu and Gujeshwori.
Aware that Kaliyug, the Dark Age, was drawing near, Kanak Muni Buddha sent Prachanda Deva, King of Gaur (Bengal), to cover the flaming image of Swayambhu since only such an act would preserve it from the gaze of the sin-ridden world. So, Prachanda Deva built a stupa encasing the sacred flame of Swayambhu.
Later, Prachandra Deva sent his son Shakti Deva to enthrone their cousin Gunakama Deva as King of Nepal. Gunakama’s reign saw a great famine afflict the kingdom but with aid from the Goddess Shantishree, he was able to overcome that disaster. The last king of this dynasty was Singhakhetu and, in his reign, the country flourished in both trade and commerce. It is said that the kingdom even conducted trade with places as far away as Singhaladeep (Sri Lanka).
The demise of Gunakama’s dynasty saw a succession of rulers from the provinces of India such as Bengal and even from as far as Madras rule Kathmandu. The most renowned was Dharmadutta of Kanchipuram who is said to have built the Pashupatinath Temple. Boudhanath may have been built by Dharmadutta’s second successor. Then came the Ahir or Abhir Dynasty who were a race of cowherds. There were eight kings in this line, the first being Bhuktaman and the last Yaksha Gupta. Owing to pastoral disputes, this dynasty was then replaced by another Abhir dynasty of shepherds. This second Abhir dynasty had a succession of three kings and their rule ended when the Kirati invaders defeated Bhuban Simha.