The name Udupi arises from the legend that Chandra - the king of the stars (Udu-star, pa-king) performed penances towards Shiva (Chandramouleeswara) here to relieve himself of the curse that had been inflicted upon him by Daksha Prajapati.
Udupi is also known as Shivali - or Shiva belli. Legend has it that Parasurama upon reclaiming land from the sea, crowned his devotee Ramabhoja as a ruler. Ramabhoja killed a snake accidentally and to redeem himself from sarpa dosha, he created a silver peetham with a snake carved on it, installed Parasurama in the linga swaroopam and worshipped him as Ananteswara.