Geological evidence indicates that Chilika Lake was part of the Bay of Bengal during the later stages of the Pleistocene period (1.8 million to 10,000 years BP). Excavations were conducted bythe Archaeological Survey of India at Golabai Sasan (20°1′7″N 85°32′54″E) north of Chilika lake in Khurdha district.

Golabai provides evidence of a sequence of Chilika area culture in three phases: Neolithic (c. 1600 BCE), Chalcolithic (c. 1400 BCE to c. 900 BCE) and Iron Age (c. 900 BCE to c. 800 BCE). Radiocarbon dating traced the earliest level of Golbai to 2300 BCE. The site is located on the left bank of the Malaguni River, a tributary of the Daya River, which flows into Chilika Lake.

This location, which gave access to the sea via Chilika Lake, gives evidence of the maritime activities of this region. The recovery of many woodworking adzes and other artifacts shows that Golabal was a boat-building centre. Golabai is the only excavated site in Odisha where boat building has been revealed. This also indicates that Chilika lake was close to Golabai and it facilitated the maritime trade of people in the area during the ancient period.