The town of Krager� was established as a municipality on 1 January 1838 (see formannskapsdistrikt). In the days of the sailing ships, Krager� was one of Norway's largest port cities. The rural municipalities of Sannidal and Sk�t�y were merged into the municipality of Krager� on 1 January 1960. The municipality now includes 495 islands,islets, and skerries along with 4,000 leisure houses. There are also 190 freshwater lakes in the municipality
