The Bhati rulers originally ruled parts of Afghanistan; their ancestor Rawal Gaj is believed to have founded the city of Gajni.

A severe drought and the resulting famine from 1895 to 1900, during the reign of Maharawal Salivahan Singh, only made matters worse by causing widespread loss of the livestock that the increasingly agriculturally based kingdom relied upon.

The attempts of Maharawal Jawahir Singh (1914–1949) at modernization were also not entirely successful in turning the kingdom's economy around, and the drylands of Jaisalmer remained backward compared with other regions of Rajputana, especially the neighbouring state of Jodhpur.

Nonetheless, the extensive water storage and supply, sanitation, and health infrastructures developed in the 1930s by the prime minister Dewan Bahadur Brijmohan Nath Zutshi provided significant relief during the severe droughts of 1941 and 1951.

Maharawal During 1930–1947, Jawahir Singh and his ministers also promoted technical education and the academic disciplines of civil and mechanical engineering in the state.