Neustadt was founded in 1250 by the Princes of Fürstenberg. There followed various
name changes: the town was called Nova Civitas in 1275 (which has the same meaning
in Latin – "New City" – as the German name Neustadt), in 1294 Neuwenstadt, in 1335
Neuwen-statt, in 1630 Neostadium and in 1650 New-Statt before it later became Neustadt.
From 1669 to 1806 there was a Capuchin monastery in Neustadt. In 1817, a great deal
of the town was destroyed in a great fire. In the 18th century, the clockmaking
trade developed in the town to become a major part of the economy.During the First
World War, and shortly thereafter, a dearth of staple foods prevailed. In May 1919
came the first municipal elections, which saw both active and passive participation
by women, who now had the franchise. This led to four women finding themselves on
the town council. The mayor who took office in 1923, Karl Pfister (d. 1993 in Freiburg)
created and safeguarded jobs.