The County of Holzappel emerged from the small lordship of Esterau consisting of 12 villages centered on the town of Esten.

In 1643, the Lordship of Esterau along with the bailiwick of Isselbach was purchased by Peter Melander from John Louis of Nassau-Hadamar, who was in considerable financial difficulty.

Peter Meleander was an imperial field marshal who had become rich due to his position in the Thirty Years' War and had been appointed Count of Holzappel in 1641.

[1] In the 17th century, the county consisted of:[2] Melander died on 17 May 1648 in Augsburg, as a result of the wounds he had received in Battle of Zusmarshausen.

[3] Peter Melander left a fortune that allowed his widow Agnes to purchase the Castle and Lordship of Schaumburg near Balduinstein in 1656.