The New Town of Prague, founded in the 14th century with unknown magnitude by Emperor Charles IV (Karel IV.), needed its own municipal house.
The building of the town hall started in 1377 at the north-east side of present Karlovo námestí (Charles Square), which at that time used to be the centre of social and business life in the New Town. The New Town Hall is without doubt one of the most beautiful and historically most important buildings in Prague.