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In 1181, Sancho VI el Sabio, king of Navarre, awarded the small village known as Gasteiz the royal title of "villa" or town. From that moment, the town was given the name of "Victoria".
Built on a hill, this medieval town bustled with activity in crafts, trade and agriculture during the 15th and 16th century. It was, furthermore, located on an important route for travellers from Castile on their way to the sea, pilgrims on the Road to Santiago or those bound for Aquitaine, Castile or Aragón in search of new markets.
Due to the ravages of plagues, disease and wars, the population did not increase significantly until the second half of the 18th century. With the creation of industries manufacturing sweets, chairs and table linen, among other items, the town underwent considerable architectural development and its population grew accordingly, a tendency that continues to this day.
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