The place gets its name from the historic Daga Trashiyangtse Dzong which was established in 1651 by Zhabdrung Ngawang Namgyel, the first man to unify Bhutan. This historic landmark still functions as the district administration centre today. The district is mainly inhabited by two major ethnic groups, the Ngalops and the Lhotshampas. Although, in recent years, people from other regions have migrated to the region. This has added to the cultural diversity of the region with the introduction of new festivals and traditions.  The Daga Dzong used to be the office of the Daga Penlop who held the rank of cabinet minister under the Desi (temporal ruler) system of government introduced by the Zhabdrung.

Lho Dakar Trashiyangtse Dzong means;
-it falls to the south of Punakha (Lho)
-it is at the base of Dakarla and also it falls under the guardian deity of Dakarla Jomo Dakarmo (Dakar)
-it came under central government and everything good traits flourished (Trashi)
-has all the enriching-presence of the south (Yangtse)