Legend has it that Sušice was founded in pre-historic times. According to the romantic version of the chronicler Václav Hájek of Libočany, Sušice was founded in 790 AD. The former Slavonic settlement, on the banks of the gold-bearing Otava River, developed on the trade route to Bavaria. In the 12th century the Sušice region belonged to the Earls of Luk and Bogen. Sušice was given a charter as early as 1273 when the Bohemian monarch Přemysl Otakar II gained the region and incorporated it into the Bohemian Kingdom. Solid walls were built under the reign of John of Luxemburg. The town gained from its advantageous situation on the Golden Path trade route from the Bavarian town of Pasov. The town was given a number of other privileges under the reign of Charles IV and his son Wenceslas IV. A big economic boom started in 6th century as Sušice was trading with  nearby Bavaria. The town burnt down several times but thanks to its advantageous situation it flourished again. The downfall came after the Battle of the White Mountain,  the incursions of Swedish troops and fires followed. The town’s new economic boom did not start until the 19th century with the development of match production.