This lake is situated on the south western direction to the main Shrine of Lord Sri Venkatesa. An ancient saint by name Jabili lived here for a long time. Hence it had the name of that famous saint. It is also an important spot at the hills.
Once upon a time a Brahmin lived on the banks of Kaveri River. Around his house wicked people lived close by, though the Brahmin was a man of upright character as days went by the fell into those vicious circles, A ghost possessed his body. He was driven hither and thither. Finally he came to the Venkata Hills. When he had in the Jabali Thirtham, the ghost could not have any influence on him. It left his body at once.
The sage Jabali knowing fully went all the perils the Brahmin had when the ghost haunted him consoled him. The Thirtham is famous for relieving obsessions and haunted cases.