Beginnings of Bisztynek are related with village called Schoneflys (Schönfliess, Piękna Rzeka, meaning beautiful river) or Strowangen , established in 1346. It received urban rights in the year 1385. Name Bischofstein (polonized as Bisztynek) was connected with the large boulder, called Bishops Boulder, but as well Devilish Boulder. The town became a center of administration, trade and crafts, maintaining its medieval urban layout. Brama Lidzbarska, one of the town gates survived till now. As a result of hostilities in 1945 center of Bisztyneks old town was destroyed. In the year 1939 3163 persons lived in Bisztynek, as for year 2008 it had 2462 inhabitants.
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