To the time of partitions these terrains were the part of Great Lithuenian's Principality. The area of Augustów wasn't much populated. Stable colonization appeared really in the 16^th century during the rules of king Zygmunt August who granted Augustów the municipal right on 17^th May 1557. From 1569 these lands entered the Polish Crown as a part of Podlasie, creating Augustów District. The initial development of the town was stopped by Swedish Deluge, and then fires and pests. Only just at the beginning of the 18^th century the town regenerated as the centre of crafts and trade.

In the 19^th century the town became the part of Warsowian's Principality and then the part of Polish Kingdom. In 1823 building of Augustów Canal was started. The Augustów Canal was built according to the project and under the supervision of the great architect Ignacy Prądzyński. People hoped that the Augustów Canal will accelerate economic development and administrative promotion but the building was unfortunatelly broken by the explosion of November's rising. Local population took active participation in both insurgents explosions in 1831 and in 1863. As it was impossible to utilize the Augustów Canal the development of the town was stopped. Period of stagnation lasted by the end of the I World War.

The Germans occupied the town from February 1915 to July. After the war the town was rebuilt. Development of  education, political lives, cultural and social initiatives started. The development of wood industry began. The first rest centres such as "House of Tourist" - present "Hetman" and "Rzeczpospolita's Yacht Club" came into existence. The political and military elites came here to rest. Ones of them were: the President Ignacy Mościcki, Minister Józef Beck and Marshal Edward Rydz Śmigły.

The II World War was tragic for inhabitants of Augustów.
On the 6^th October 1939 I Pułk Ułanów Krechowieckich surrended as the last soldiers fighting in defensive war near Kock. Then the inhabitants of Augustów fought in Monte Cassino, Lenino and Wał Pomorski. They also took part in conquering Berlin. In Augustów District were created strong structures of AK. Augustów was liberated on 24^th October 1944 by the Red Army. After the war the development of Augustów was focused on touristic values of the town. In the 60^s the touristic base was extended. On 14^th October 1993 the town was granted status of health resort what influenced the later investments and development of the town as a tourist resort.