The canton was created in 1798 from the merger of the County of Baden with the Freie Ämter (free bailiwicks) and Kelleramt, all of which had until then been condominiums (gemeine Herrschaften) of the Old Swiss Confederation.

The canton was divided into five districts — Baden, Bremgarten, Muri, Sarmenstorf and Zurzach.

Since the majority of Roman Catholic, conservative population were indifferent to the new state, officials and politicians had to be imported from neighboring cantons.

In return, Lucerne's Amt of Merenschwand was transferred to Aargau (district of Muri).

The former canton can still be identified with the contemporary Aargau districts of Zurzach, Baden, Bremgarten and Muri (albeit with the gains and losses in 1803 as detailed above).