Skand Puran, in Kumarika Khand ( कुमारिका खण्ड ), gives detailed information about this Holy River, awarding it the status of Best place of Pilgrimage. This chapter gives this river so much Significane that I was tempted to search the net to know the present status of such an important River of Puranic Times.
Skand Puran says
मालवा नामक देश से मही नदी उत्पन्न हुई है और दक्षिण समुन्द्र में जाकर मिलती है। उसके दोनों तट परम पुण्यमय तीर्थ हैं। फिर जहाँ सरिताओं के स्वामी समुद्र से उसका संगम हुआ है उसके विषय में तो कहना ही क्या है।
पूर्वकाल की बात है, अर्जुन तीर्थ यात्रा करते हुए दक्षिण समुन्द्र के तट पर यहाँ के पांच तीर्थों में स्नान करने के लिए आये. उनमें पहला "कुमारेश" है, जो मुनियोंको प्रिय है. दूसरा "स्त्म्भेश" तीर्थ है, जो सौभद्र मुनि का प्रिय है. तीसरा "व्र्क्रेश्वर" तीर्थ है, जो इंद्र पत्नी शचि को प्रिय लगता है. चौथा "महाकालेश्वर" तीर्थ है, जो राजा करन्ध्म को प्रिय है. इसी प्रकार पांचवा "सिद्धेश" नामक तीर्थ है, जो महाऋषि भारद्वाज को प्रिय है.
Wiki says
Geologically, the Malwa Plateau generally refers to the volcanic upland south of the Vindhya Range. Politically and administratively, the historical Malwa region includes districts of western Madhya Pradesh and parts of south-eastern Rajasthan. ( Source Link )
Mahi River, stream in western India. It rises in the western Vindhya Range, just south of Sardarpur, and flows northward through Madhya Pradesh state. Turning northwest, it enters Rajasthan state and then turns southwest to flow through Gujarat state and enter the sea by a wide estuary past Khambhat after about a 360-mile (580-km) course. The silt brought down by the Mahi has contributed to the shallowing of the Gulf of Khambhat and the abandonment of its once-prosperous ports. The riverbed lies considerably lower than the land level and is of little use for irrigation. ( Source Link )
I found the Mahi River and the Stambheshwar Temple at the bay of Cambay where Mahi River merges with the Arabian Sea. Here's the Puranic History and Significance of Mahi River as mentioned in the Skand Puran.