Titisee-Neustadt is divided into six communities which historically have been separate, although they are now amalgamated into one municipality.
Neustadt was founded in 1250 by the Princes of F�rstenberg. 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. This he managed to do through a loan of, all together, 700,000 Reichsmark, which he obtained through negotiations with major banks in the United States, Switzerland and the Netherlands. Through further job-making measures, such as public building schemes, about the time of the Great Depression, he was in a position to keep the jobless rate in Neustadt at a comparatively low 12%, whereas it was then 18% in Germany as a whole.
Later came the Nazi r�gime, which used Der Hochw�chter and the Echo vom Hochfirst, the local newspapers, for their own ends, later shutting them both down. Despite exerting this influence, the Party's share of the vote in Neustadt was always lower than in Titisee, where it compared with the national average. Nevertheless, the NSDAP local moved into the town hall in 1933, occupied its balcony and made an example of a few people in public life by
