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Once a part of the early Roman province of Raetia, Liechtenstein was a region ruled by the Hohemens until it became a dynasty into the 13th century. Through the following centuries, the dynasty got hold of large tracts of land in Moravia in Lower Austria, Silesia and Styria. These properties, however, were ruled under feudal lords identified with the Habsburg family. In order to be eligible for a seat in the Imperial Diet or Parliament—the Reichstag—the dynasty purchased a small part of Herchaft or lordship of Schellenberg and Vaduz county from the Hohenems under whom the dynasty was first invested with a possession.

In January 1719, Charles VI, the Holy Roman Emperor, announced that Vaduz and Schellenberg were to be united into one territory named Liechtenstein which eventually became a member of the Holy Roman Empire. But after the Empire fell into the hands of French Emperor Napoleon I in 1806, all the working mechanisms of Liechtenstein broke down, leading it to join in 1815 the German Confederation led by the Emperor of Austria. After Austria granted it a limited Constitution in 1818, the government started undertaking economic activities such as ceramics making and cotton weaving, and building infrastructures as well.

After a new Constitution was drawn in 1921, Prince Franz Joseph II became the first ruler to live in the Castle above Vaduz. He was succeeded by his son, Prince Hans Adam II upon his death in 1979. In 2004, Prince Adam named his son Prince Alois, his permanent representative to his various government functions.