Long ago, in a village called Gunj Kati, Parshuram the avatar of Vishnu was tired of killing the Kshatriyas and wanted to lay down his arms. He propitiated to Goddess Vajreshwari, an avatar of Parvati to take His deadly weapons away. She took them and hid these in the bowels of earth. Then She told Him to do severe penance there itself.

Vajreshwari

The Gunj Kati temple!

This is the myth surrounding Vajreshwari.

Later Chimaji Appa found the Goddess and after he prayed to Her, she helped him overcome the Portuguese in Bassien Fort near Mumbai. In gratitude, he made a temple for the Goddess atop a nearby hill. He took the statues from Gunj Kati and consecrated these at the village, now called Vajreshwari.

The statues of Vajreshwari, Renuka( Parshurams mother), Kalika, Parshuram, etc are seen in that temple even today.
At Gunj Kati, a replacement statues of these Goddesses are seen too. A nearby temple is the place where Parshuram did His austerities.

Vajreshwari

The place where Parshuram did penance

The place has over 150 hot springs, heated due to the blood from the killing of the Kshatriyas and subsequent hiding of His weapons in the bowels of the earth.

Image Courtesy by  mythistical