The proper village developed during the 12th century, with the creation of mills, sawmills and blacksmiths for copper manufacturing along the Gambis brook.

During the 16th and 17th centuries Cavalese became the vacation resort of bishops and aristocrats from the region, who greatly contributed to the development of the village.

During the 1900s, and especially in the years following the end of World War II, the town underwent an impressive growth thanks to the development of the construction industry, craftsmanship and tourism, with the creation of numerous hotels and more accessible ways of communication.

[3] A prominent role in the economic activity is occupied by the touristic sector, with the presence of numerous hotels, restaurants, and ski resorts.

Of notable importance are the construction industry, craftsmanship (wood, iron and marble) and the social cheese factory.