Reutte was declared a market town by Sigmund in 1489. This was confirmed later by Maximilian I who also added some further rights. The people of Reutte commemorate this with an annual festival on the first Saturday in August.
During the period when Austria belonged to Germany (1938 – 1945) there was an outpost of Dachau concentration camp near Reutte, called “Plansee Breitenwald”. In April 1945, American troops of the 44th Infantry Division reached Reutte. The American soldiers had been told to expect heavy attacks but in fact there was no special resistance by Axis forces at all.
As Reutte is connected with other major parts of the Tyrol only by the Fern Pass, international transport and economic connections to the EU, especially to Germany, are becoming increasingly important.
The coat of arms of Reutte shows three fir trees on three hills, representing the abundance of available timber in the region. (The name "Reutte" has its origin in "roden" or "reuten" meaning glade). The background of red and white stripes stands for the state and the republic.