In 1967 the market town (köping) of Laxå (instituted in 1946) was merged with two adjacent rural municipalities.

One of them was transferred from the former Skaraborg County, placing today's municipality in two historical provinces, Närke and Västergötland.

Its history stretches back to the 12th century, when the convent Ramundeboda was founded about 4 km west of the town.

The exact results of Sweden Democrats were not listed at a municipal level by SCB from 1988 to 1998 due to the party's small size at the time.

Blocs This lists the relative strength of the socialist and centre-right blocs since 1973, but parties not elected to the Riksdag are inserted as "other", including the Sweden Democrats results from 1988 to 2006, but also the Christian Democrats pre-1991 and the Greens in 1982, 1985 and 1991.