Udaipur (city of lakes), often called the Venice of the East. Top tourist places in Udaipur are City Palace, Lake Palace, Jag Mandir, Fateh Sagar lake and Shilpgram. The city is located in the southernmost part of Rajasthan, near the Gujarat border. It is surrounded by the Aravali Range, which separates it from the Thar Desert. Udaipur, formerly the capital of the Mewar Kingdom, is a city in the western Indian state of Rajasthan. Founded by Maharana Udai Singh II in 1559, it’s set around a series of artificial lakes and is known for its lavish royal residences. City Palace, overlooking Lake Pichola, is a monumental complex of 11 palaces, courtyards and gardens, famed for its intricate peacock mosaics.