The "Vishnu Purana" barely notices this event, but it is fully described in the Bhagavata. The question is there asked, "Why did Hari, the lord of creatures, ask, like a poor man, three pieces of land from Bali? And why, when he had obtained his object, did he bind him? And why was an innocent being bound by the lord of sacrifice?" The answer given is as follows:--After Bali had been killed by Indra, he was restored by the Brahmans of the race of Bhrigu, who consecrated him for supreme dominion, and performed a sacrifice to obtain it for him. He then sets out for Amravati, as before narrated; and Indra is told, when he applies to his preceptor for advice, that Bali had obtained this power "by virtue of the Brahman's sacrifice;" and that, save by Hari, he is unconquerable. "He now reaps the fruit of Brahmanical power; through contempt of these same Brahmans he shall perish with all his descendants."
The gods forsake their capital, which is occupied by Bali. Aditi, the mother of the gods, is distressed as she sees the condition of her children; and acting upon the advice of her husband, propitiates Vishnu, who says: "I shall with a portion of myself become thy son, and deliver thy children. Wait upon thy husband, the sinless Prajapati, virtuous female, meditating upon me, who in this form abide within him." Aditi followed the advice of the god; and Kasyapa knew by meditation that a portion of Hari had entered into him. In due time the son was born, and became a dwarfish Brahmanical student.
As the Bhrigus are performing a sacrifice for Bali on the banks of the Narmada river, this dwarf visits Bali at Indra's heaven. "Acquainted with his duty, Bali
placed upon his head the auspicious water with which the Brahman's feet had been washed, and said, 'Welcome to thee, O Brahman! What can we do for thee? Ask of me, student, whatever thou desirest. Son of a Brahman, I conclude thou art a suppliant; ask a cow, pure gold, an embellished house, food and drink, a Brahman's daughter, flourishing villages, horses, elephants, and carriages." The dwarf concludes a speech with the semblance of moderation as follows: "I ask from thee a small portion of ground, three paces measured step by step. I desire no more from thee. A wise man incurs no sin, when he asks [only] as much as he needs." The king, though astonished at the smallness of the request, takes a vessel of water in his hand, and is about to confirm the gift; when his preceptor, seeing through Vishnu's device, tries to dissuade his pupil. In a long speech he seeks to show that rather than be left homeless it would be better for him to break his word. But the king persists in fulfilling his promise; even though cursed by his preceptor for doing so. With two steps Vishnu strode over the universe; there was nowhere for him to take a third.