The town has a land area of 3.32 square kilometres (1.28 sq mi) and is the smallest municipality (gmina) in terms of geographical size in Poland.

The town was founded by the Teutonic Knights commander of Balga, Heinrich von Muro, on 5 February 1335 at the crossroads of Balga-Heilsberg (Lidzbark Warmiński) and Bartenstein (Bartoszyce)-Mehlsack (Pieniężno) in the heart of the Old Prussian region of Natangia.

In 1454, King Casimir IV Jagiellon, at the request of the confederation, signed the act of incorporation of the region to the Kingdom of Poland,[1] an event that sparked the Thirteen Years’ War (1454–1466).

After the battle of Grunwald and owing to the economic weakness following this defeat, the Teutonic Order was not able to pay off his debts to its mercenaries anymore, so the town was pawned to Nikolaus von Taubenheim in 1482.

The church itself was used as a camp for Russian prisoners captured at Eylau and at the earlier battle of Hoofe (Dwórzno).

Owing to some shootings by German soldiers, the post office, one house, and several barns were burned down and seven civilians were executed.

As an important travel nexus, a large number of civilians trying to escape from East Prussia were captured here.