The first city privileges were granted in the 14th or 15th century, when the area belonged to Denmark. The first certain date is 1513 when it was re-granted. At the time, the name in print was Botst�d�, which would translate to "Boat (landing) place".
The area was in 1658 conquered by Sweden, and B�stad was given new "special" privileges in 1664, because it was of too insignificant size to receive the full royal charteras one of Sweden's cities. The minor privilege allowed the town to be used for commerce, handicraft and hostelry. The minor privilege was in effect until 1858 when it got proper rights as a merchant town, or k�ping. It is since 1971 the seat of B�stad Municipality.
B�stad is best known for its tennis tournament Swedish Open on the ATP Tour, held each summer since 1948. The tournament boasts the largest number of courts in the country, and has fostered many internationally successful tennis players, such as Magnus Larsson. It attracts some 20,000 visitors and puts the town in a festive mood for a few weeks. Since 2009, the women's WTA tournament previously held in Stockholm is also played in B�stad as part of the Swedish Open.
The city is also home of the Troentorp Clog, formerly known as B�stad Clogs. Troentorp Clogs have been handcrafted in B�stad since 1907 and continue to be produced with the original wooden design
