The story goes that the beautiful state of Kerala was once ruled by an asura (demon) king Mahabali. The King was greatly respected in his kingdom and was considered to be wise, judicious and extremely generous. It is said that Kerala witnessed its golden era in the reign of King Mahabali. Everybody was happy in the kingdom, there was no discrimination on the basis of caste or class. Rich and poor were equally treated. There was neither crime, nor corruption. People did not even lock their doors, as there were no thieves in that kingdom.
There was no poverty, sorrow or disease in the reign of King Mahabali and everybody was happy and content.
Mahabali belonged to the Asura dynasty, a race of demons, but was an ardent worshiper of Lord Vishnu. His bravery and strength of character earned him the title of "Mahabali Chakravathy" or Mahabali - the King of Kings.
Looking at the growing popularity and fame of King Mahabali, Gods became extremely concerned and jealous. They felt threatened about their own supremacy and began to think of a strategy to get rid of the dilemma. To curb the growing reign of Mahabali and maintain their own supremacy, Aditi, the mother of Gods, seeked help of Lord Vishnu, whom Mahabali worshiped.
It was said Mahabali was very generous and charitable. Whenever anybody approached him for help or requested for anything he always granted it. To test the King, Lord Vishnu disguised himself as a dwarf and a poor Brahmin called Vamana. He came to the Kingdom of Mahabali, just after Mahabali performed his morning prayers and was preparing to grant boons to Brahmins.
Disguised as Vamana, Vishnu said he was a poor Brahmin and asked for a piece of land.
The generous King said, he could have as much land as he wanted. The Brahmin said that he just wanted as much land as could be covered by his three steps. The King was surprised to hear but agreed.