The sect was founded by Lin Chaoying during the Song dynasty and shares a long history with its neighbour, the Quanzhen Sect, which is based in Chongyang Palace () on Mount Zhongnan. The Ancient Tomb was built by Quanzhen's founder, Wang Chongyang. Although it is called a tomb, it was actually used to store supplies and weapons in preparation for war against invaders from the Jurchen-ruled Jin Empire. The tomb is also filled with various traps and hidden rooms and serves as a hideout for the Han Chinese defenders of the Song Empire.