This holy tank is 27 m by 12 m and was built in 1696 by Chitrarao Khatarkar. It is believed that Rama and Sita used to bathe in this tank during their exile. It is in this tank of holy water or kund that religious Hindus even today, immerse a dead person's ashes so that the soul of the dead person can attain moksha or liberation. The ashes of numerous personalities such as Pandit Nehru, Indira Gandhi, Y B Chavan and others have been immersed at Ramkund.

The most important place in Panchavati is Ramkund. It is so called because Lord Rama is believed to have taken bath there. Mortal remains (Asthi) immersed in this kunda, are immediately absorbed in the water. A dip in this sacred kunda is considered very pious. Situated nearby is Gandhi Lake (Talav) having a memorable monument made out of white marble, in memory of the Father of the Nation. The ashes were dropped in Ramkund after Gandhiji passed away on 30th January 1948. Mr. Nehru was also present on this occasion.