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The municipality of Karlsdorf-Neuthard was formed by a voluntary merger of the villages of Karlsdorf and Neuthard on January 1, 1975.
Karlsdorf was founded in 1813, when Dettenheim residents, who frequently experienced floods from the river Rhine, resettled on approval of Karl, Grand Duke of Baden within the confines of Altenbürg. The new settlement was named in honour of the Grand Duke.