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About 1200 the Passau bishop Wolfger von Erla had Wolfstein Castle erected to control the surrounding estates he had received from the hands of the Hohenstaufen emperor Henry VI. A settlement was laid out beneath the castle which in 1301 was mentioned as Purchstol zu Wolferstein. The later name Freiung denoted the fact that the first settlers were exempt from taxes (cf. Freihaus). The nearby village of Kreuzberg received market rights in 1354, which were transferred to Freyung in 1523.