According to local legend, Bilaspur was founded in the 17th century by a fisherwoman named Bilasa. The city still honors this heritage today through the annual Bilasa Mahotsav festival. Historically, the area was controlled by the Kalachuri dynasty of Ratanpur, which lies just a short distance north of modern Bilaspur. Ratanpur served as the capital of the region for centuries, leaving behind a legacy of ancient forts and temples.
In 1741, the Maratha Empire gained control of the region, significantly shifting the cultural and administrative landscape. Maratha rule lasted until the early 19th century when the British East India Company began extending its influence. The British formally annexed the territory in 1818, followed by a period of administrative restructuring. Bilaspur was officially declared a district in 1861, and the Bilaspur Municipality was constituted in 1867.
The late 19th and 20th centuries saw massive economic development, particularly with the arrival of the Bengal Nagpur Railway in 1890, which transformed Bilaspur into a major commercial and transit hub. Upon the creation of the new state of Chhattisgarh in 2000, Bilaspur was designated as the seat of the state's High Court, cementing its modern identity as the state's judicial capital.

