The present municipality was formed in 1974, whenformer municipalities were amalgamated. The number of entities in the area in 1863 was seventeen.
The city is being modernized with regards to shopping, eating and education, and to boost tourism in the state of Småland. New stores have moved in and two new commercial centers are to be built in 2015. The local school has moved up in rankings in a list comparing Sweden's schools. In 2006, the school was ranked #248 out of 250. In 2008, the school was ranked #180. The local Gymnasium (High School) was the seventh-best in the country, and in September 2008 the local library was announced the best library in Sweden.