By the middle of the 11th century the abbots of St Gall had established their power in the land later called Appenzell, which, too, became thoroughly teutonized, its early inhabitants having probably been romanized Raetians.

By about 1360, conflicts over grazing rights, taxes, and tithes were causing concern for both the abbot and the farmers of Appenzell.

With the support of League, Appenzell refused to pay many of the gifts and tithes that the Abbot Kuno von Stoffeln demanded.

Appenzell declared itself ready to stand against the abbot, and in 1403 formed an alliance with the canton of Schwyz, a member of the Old Swiss Confederation that had defeated the Austrians in the previous century.

A small force of Appenzell and Confederation troops defeated the League army and signed a short lived peace treaty.

[4] During the expansion, Appenzell had even captured the abbot of St Gall and in response they were excommunicated by the Bishop of Constance.

The city of St. Gallen and the canton of Schwyz each paid off the Austrians to avoid an attack, and the Bund was dissolved by King Rupert on 4 April 1408.

[4] In 1411 Appenzell signed a defensive treaty with the entire Swiss Confederation (except Bern), which strengthened their position against the abbot.

This treaty represented the end of Appenzell's last financial tie to the Abbey of St. Gall, and a movement to closer relationships with the Confederation.

[4] Starting in 1522, followers of Martin Luther and Huldrych Zwingli began to preach the Protestant Reformation in Appenzell.

The early reformers had the most success in the outer Rhoden, a term that in the singular is said to mean a "clearing," and occurs in 1070, long before the final separation.

The entire Ausserrhoden (except Herisau, where Joseph Forrester convinced them to remain Catholic until the late 16th century[8]) converted to the Reformation in 1529.

While the majority of the residents of Appenzell town remained Catholic under their priest, Diepolt Huter, there was a strong Reformed minority.

But an armed mob of angry residents from the neighboring village of Gonten prevented the abolition of the Mass in Appenzell.

[7] Two small monasteries (Wonnenstein in Teufen[10] and Grimmenstein in Walzenhausen[11]) in Ausserrhoden remained catholic though the towns around them adopted the new faith.

The construction of numerous railway lines between 1875 and 1913 helped the local industry and the population grew to a maximum of 57,973 people in 1910 (compared with 53,200 in 2001).