Giethoorn was founded by a group of fugitives. The came around 1230 from regions bordering the Mediteranean. These first inhabitants found masses of horns of wild goats, which had probably died in 1170 during the St. Elizabeth's flood. The called their settlement Geytenhorn (geit = goat), ulimately becoming Giethoorn (dialect goat=geit=giet).
The village owes it characteristic appearance to peatdigging. The peatdiggers dug up the peat-soil at the places that most suited them, mixed it in a trough and spread it out on the land to dry. The result could be cut as peat. This peatdigging led to the formation of large and small lakes. To transport the peat ditches and canals were excavated. Many houses are as it were built on little islands, reached through a high bridge. All this imparts to Giethoorn a beauty unequalled anywhere else.
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