Wat Doi Khoi Khao Kaew is located on a hill just 250 meters away from the west bank of Mae Ping River and with close association with Wat Klang Suan Dokmai nearby. Both have strong connections with King Taksin the Great, his time as Governor of Tak, and the general who expelled the Burmese after the fall of Ayutthaya in 1767.

Here at Wat Doi Khoi Khao Kaeo legend relates the divination conducted by Taksin when he was governor. Back then he cast lots to determine that "If I possess adequate righteousness or virtues to help my subjects achieve the salvation, may the bell mallet which I am going to hurl break only the narrowest part of the glass which is placed at 10 meters away, and may no other parts of the glass crack". Miraculously, the result turned out as he wished. Soon after his victories over the Burmese, Taksin completely restored the temples here.