and as a counter act towards the governmental politic the Republic of Jamtland was established in 1963. �stersund became the republic's "capital" and the home to the freedom festival Storsj�yran.
�stersund continued to grow and in 1970 Fr�s� k�ping was made part of �stersund. In the year of 1971 a major reform occurred in Sweden creating large municipalities replacing all the older institutions and the new large municipality was named after the city. Just like in the rest of Sweden the public sector greatly expanded at this time. In 1960 the public sector of Sweden constituted about 30 per cent of Sweden's total gross domestic product, in the middle of the 1980s the number had grown to 65 per cent. At the time it was here the jobs were, in the county board, the state and in the new municipality. The main reason for the large expansion were the expanded transfer payment to the households that occurred, along with growing interest and public consummation. Everything was founded by large tax raises. The entire 1970s was an expansive period. Besides the new industrial complex the Fr�s� bridge was constructed, a new police house, Z-kupolen (burned to the ground in 1989), Storsj�teatern, Folkets hus, urban district churches, malls etc. The County Administration board and the hospital expanded and large housing estates were constructed in K�rf�ltet, Lugnvik and Odensala.
The city tried to acquire a "humanistic college of higher learning" on Fr�s�n already in the 1940s. A large tension existed between the cities in Norrland and Ume� left the struggle victorious 1962. �stersund however required a "social college of higher learning" in 1971. �stersund is since 2005 one of the main campus sites of the Mid Sweden University(Mittuniversitetet). A number of governmental offices have also been located to the city in recent years
