Built and designed by HazratHussain Shah Wali in 1562 and named after him, the large lake is fed by River Musi.It is an artificial lake that holds water perennially fed by canals from Musiriver. The road on the Tank Bund was widened in 1946 when Sir Mirza Ismail was the prime minister of Hyderabad Deccan. Further widening and beautification of the Tank bund took place during 1987-88 with the addition of fountains with dancing waters, tantalizing colored lights at night and bronze statues.A large monolithic statue of the Gautama Buddha, erected in 1992 stands on an island in the middle of the lake.