Åsgårdstrand is one of two towns in Horten Municipality, established as a loading site some 450 years ago, and has been used for timber export, shipbuilding and shipping. The town was put into use as a loading station in 1650, under Tønsberg and from 1660 under Holmestrand. In 1752 the port was granted privileges to trade in domestic goods. From the early 1800s Åsgårdstrand was a busy export port for timber cargo, including to Holland. Trade stagnated with the end of the sailing season.
Åsgårdstrand has since gained international attention as an artists' village. It became known as a centre for artists and since the 1880s a number of artists have sought out Åsgårdstrand, including world-famous names such as Edvard Munch, Christian Krohg and Hans Heyerdahl. This is due to the unique light of the place. The artists went either to Hirtshals or Åsgårdstrand to be able to depict this unique light in their paintings. Edvard Munch's 'Girls on the Bridge' was painted just below the town's hotel.
Åsgårdstrand has been a popular holiday and bathing resort since the 1920s. Over the years it has maintained its popularity as a holiday resort, especially among sailors. Every summer there is a bustle of small boats in the fjord and in the harbour. Today, Åsgårdstrand is an active urban community with around 3,000 permanent residents and it received its town status on 1 January 2010.
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