At the confluence of Rivers Lachen Chu and Lachung Chu lies the small town of Chungthang. About 95 km from Gangtok and lying at an altitude of 1,790 m, this town boasts abundant natural beauty. The valley is said to be blessed by the patron saint of Sikkim, Guru Padmasambhava, who is believed to be one of the founding fathers of Tibetan Buddhism. It is said that the imprints of his palm and foot are still visible on a rock that has an opening from which mineral water flows out continuously. It is considered holy by devotees. Nearby is a patch of land blessed by Guru Padmasambhava. It is said the guru sprinkled a few grains here and defying nature that doesnt aid agriculture, paddy has since sprouted at this place and is now cultivated by villagers.

Legend has it the the word 'Demazong' or the hidden valley of rice as Sikkim is known, first originated in Chungthang.