Domažlice is also a Municipality with Extended Competence and a Municipality with Commissioned Local Authority within the same borders.
Domažlice was first recorded as a town in 1231. Přemysl Otakar II of Bohemia ordered the city to be fortified for the purpose of protecting the border with Bavaria. It would remain fortified from 1262 to 1265. Border guards were recruited from the Chodové (free farmers) who settled in the vicinity of Domažlice.
The city was mortgaged to Bavaria in 1331, lasting until 1419 (with some interruptions). Under Hussite rule, German citizens were expelled from the city, and since then, the population is predominantly Czech. In 1431, Prokop the Bald defeated the crusaders of the Holy Roman Empire near Domažlice. The 15th and 16th century saw Domažlice change hands frequently, but its importance diminished following the end of the Thirty Years' War. It was not until 1770 that it recovered, largely due to innovations in the textile industry.
Within the context of the Czech National Revival, Domažlice became a central place during the 19th century. A pilgrimage took place on August 13, 1938, which developed into a large protest demonstration against the German occupation.