The origins of Büdingen go back to the moated castle constructed in the 12th century. The civic community developed out of the settlement of castle servants which grew up outside the castle walls. In 1330, this community was granted the right to hold markets by the House of Ysenburg and, shortly afterwards, was granted its statute of liberty too (in the “Freiheitsbrief”).
In return, the town dwellers agreed to build a protective wall around the town which would help to secure it against attack. The New Town grew up on the other side of the city wall (which which completed in 1350) and remained separate for over three hundred years, until the ramparts and ditches between the Old and New Towns were partly removed. Enough space was created at the most important point of contact between the Old and New Towns to create a new Market Square: this Square, surrounded by half-timbered houses, remains the town centre today.