The founder of the Han dynasty was born in Zhongyang Lane, Fengfengyi, in the state of Pei. His surname was Liu, and his given name was Ji. His father was known as Grandfather Tai, and his mother as the Liu Woman. Legend holds that his mother once rested beside a marsh, where she dreamed of meeting a god. At that moment, thunder rolled and lightning flashed across the darkened sky. Grandfather Tai went to investigate and beheld a dragon coiled above her. She soon conceived and gave birth to Gaozu. Gaozu had a prominent nose, a face marked by draconic features, and a handsome beard. Seventy-two black moles dotted his left thigh. He was kind and generous to others, ever ready with a gift, and possessed a magnanimous spirit. He harbored grand ambitions but showed no interest in the family business or farming. Upon reaching adulthood, he presented himself for official appointment and was made the Sishui magistrate. Among the county officials, none escaped his casual mockery. He had a fondness for wine and women. He frequently drank on credit at the establishments of the old woman Wang and one named Wu Fu, and when drunk would simply sleep where he lay. Wu Fu and the old woman Wang noticed that a dragon often appeared above him during these visits, which unsettled them. Yet whenever Gaozu purchased wine at their establishments, their sales would multiply several times over.
When the people witnessed this strange occurrence, the merchants would at year's end destroy his IOUs and forgive his debts. Gaozu was once dispatched on official business to Xianyang, where he slipped away to watch the imperial procession pass by. Gazing at the First Emperor in his grand carriage, he sighed deeply and murmured, "Ah, a true man should be like this!"
A man of Lü had been close to the magistrate of Pei, and when he fled there to escape his enemies, he settled in the county. When the local gentry and officials learned that the magistrate was entertaining a distinguished guest, they came to pay their respects. Xiao He, serving as chief clerk, received the guests and managed the gifts. The magistrate announced to the assembly: "Anyone whose gift falls below a thousand coins shall take a seat in the lower hall." Gaozu was merely a petty officer, but he had always despised the other officials. He therefore submitted a card inscribed with the words: "Gift of ten thousand coins" — though he had brought not a single coin. When the card was presented, Lü Gong was greatly astonished and immediately rose to greet him at the door. Lü Gong was skilled at reading physiognomy. Observing Gaozu's bearing and features, he showed him special respect and guided him to a seat. Xiao He remarked, "Liu Ji has always made grand promises but seldom fulfills anything." Gaozu then turned to treat the other guests with his characteristic nonchalance, taking the seat of honor without the slightest hesitation.
As the banquet drew to its close, Lü Gong caught Gaozu's eye with an unmistakable look, clearly urging him to remain. When the wine had been poured and the guests finally departed, Lü Gong said, "I have studied physiognomy since youth and examined countless faces, yet never have I seen one as noble as yours. I urge you to take good care of yourself. I have a daughter, and it would be my honor to have her become your wife and serve you."
After the banquet, Lü Gong's wife flew into a rage. "You always claimed you wanted our daughter to marry a man of distinction," she stormed. "The magistrate of Pei held you in high regard and sought her hand—yet you refused him. Why would you casually promise her to Liu Ji?" Lü Gong replied, "This is no affair for women and children to understand." In the end, he gave his daughter to Liu Ji.
That daughter became Empress Lü, mother of Emperor Xiaohui and Princess Lvyuan. While Gaozu served as the Sishui officer, he frequently returned home to work the fields. One day, while Empress Lü was hoeing the fields with her two children, an old man passed by seeking water. She gave him food, and after he had eaten, he studied her face and said, "You, madam, are destined for the highest nobility." Then he turned his gaze to the two children. Looking at Xiaohui, he said, "This son will bring you honor." Looking at Lvyuan, he pronounced her noble as well. After the old man departed, Gaozu happened to arrive from a neighboring house. Empress Lü told him about the strange visitor and his predictions about their children. Gaozu asked where the man was, and she replied that he could not have gone far. Gaozu chased after him and caught up, pressing him for more details. The old man said, "Both your wife and children bear your likeness. Your fate, sir, is one of immeasurable nobility." Gaozu thanked him, saying, "If what you say proves true, I shall never forget your kindness." Later, when Gaozu rose to power, the old man had vanished without a trace.
While serving as Sishui officer, Gaozu fashioned a bamboo hat for himself and sent a warden to have it properly made in Xue. He wore it frequently, and even after achieving greatness, he continued to do so—it later became known as the "Liu hat."
Gaozu was once assigned to escort a group of laborers to Lishan. En route, most of them escaped. He calculated that by the time they reached their destination, nearly all would have fled. At Fengxi Marsh, he halted to let them drink. That night, he released all the men in his charge. "All of you may go," he said. "I too shall disappear from here." More than a dozen sturdy men among the prisoners volunteered to follow him.