Specifically, the area in which the earliest traces of human settlements have been reported is the Wierde, a quarter located in the northern part of the city centre.

The name of the town is a lexical compound meaning “the dam built in the Appe” or “Apt.” The junction of the Apt and the East-West canal proved convenient as a location for the foundation of a lively trade settlement.

Owing to its favourable location at the junction of inland waterways and thus to its open access to the sea, the settlement soon developed into a vibrant centre for shipping and trade.

With seagoing ships loading and unloading freight at its two busy quays located on the opposite banks of the canal, wealth would flow into the City.

Stored in Appingedam and traded in its markets, the goods would subsequently be transported via inland waterways to the northern regions of Germany, Westfalia, and even further into the Baltic Sea area.

Work on the development of the system of canals and mooring docks continued well into the 15th century, and it is till this day that some of the 600-year-old structures may be admired along the winding waterfront avenue leading from Koningstraat to Westersingel.

Along the Damsterdiep, a number of businesses—foundries, brickworks, limestone quarries, sawmills, and other industries supporting the dockyard operations or related to the region's agricultural production—emerged over the years.

Even though the importance of the waterways decreased after the Groningen-Delfzijl railway line opened, at the beginning of the 20th century thus diminishing Appingedam's profits on water transportation, the former trade hub reinvented itself as a major industrial centre in the region of Fivelingo.

At the end of World War II, unlike the remaining regions of the Netherlands, the Eemsmondsregio, Appingedam and Delfzijl suffered major damage as a result of heavy shellings by the Nazi artillery.

Many of the Appingedammers (or Damsters) were evacuated and the city itself, guarded by a handful of defenders, would suffer a ten-day-long agony until May 2, 1945, when it was eventually liberated by the Canadian troops.

The returning inhabitants found their hometown heavily battered and even though its reconstruction commenced immediately, it took decades to restore Appingedam to its present glory.

Immediately after World War II, Appingedam's star became largely eclipsed by the neighbouring city of Delfzijl, which developed rapidly and gained the status of the third port of the Netherlands and one of the most important industrial centres in the north of the country.

Ambitious plans to restore the historic centre of Appingedam in keeping with its unique, centuries-old identity were soon devised and implemented at an enviable pace.