Belthangady taluk in Dakshina Kannada district is known as Malnad region and it is also a Tulunaadu region. Nethravati River is flowing in the border of this taluk. There is a village called Karaya which is in between Uppinangady and Belthangady Road, It is a seventh century old temple. The main deity here is Shri Mahalingeshwara. There is a popular story about the two terms Karaya and Mahaalinga. Popularly known as Karaya, a part of the Malnad region, In Olden days this place is the home for the large number of potters who, makes clay pots and sell them from house to house. There are three most popular places known as Bhaavanthabettu, Kuduretti and Mugga. There was a Brahmins of the sub-caste name Kuddannaya in Kuduretti. These Kuddannaaya family has the right to sit in front of kings. The nickname "kulthonnunaar"(tulu word) has renamed to "kuddannaaya".There was billavas in mugga village. These three houses carried out all conservations and burdens related to this town.

One day the potters had tied all the pots and kept it for drying them on the ground. After drying, they have lifted all the pots which are kept for drying, At last one pot was remained at the end. When the potter try to lift it, but the potter couldn't lift the pot. They have used their all strength to lift it, but it did not came up. All of the potters are worried at this incident and came to the king of Bhaavanthabettu. All others in the village are also assembled and rushed to the potter's house. The king of Bhaavanthabettu also tried to lift the pot, but it couldn't came up. The pot was immobilized. Knowing this glory of God. Stunned by this miracle, the Tulavas started saying 'Undu Va karaya' (Tulu word) and they all went to their respective Houses. Darkness was crowded in the mind of the people. There was a natural darkness in the town. In the darkness the "pot" dissolved in the unexcepted winter fog.

The next day the king with all his members arrived, The pot was melted from the ice and spilled around and the linga (kannada word) was stood up. This news was spread to all Tulavaas tongue as Mallalingoya (tulu word). The rulers consulted with sages and set up a place to worship a God and arranged for a small form of hut like structure to worship a god everyday. The potters, fearing for the glory of God, decided to stay away from this glory of the god and gone to the neighboring village called Ilanthila.

Centuries rolled out. As civilizations evolved, the huts were re-innovated and gained copper coating. The surrounding wall became a shrine (gopura), then a Fair festival to god were started. The Strong belief that Karaya shri mahalingeshwara god will afford the childrens, for parents who doesn't have the childrens. In olden days British government took over the responsibility of preserving this temple. This temple became famous in Karaya Village. The devotees from all over india and who are settled in other countries also come to this temple and taking the blessing from the god.