Until the Agger Tange was breached in 1825, Lemvig was isolated from the north sea, though it was located on the shipping route to Thy within the Limfjord.

With increasing volumes of goods, it became evident that a rail connection directly at the harbour was need, and finished construction in 1892.

[5] By the turn of the 20th century, a number of businesses had been established in the town, including a tobacco factory, brickworks, steam mill, and a printing house.

[4] Although no suburban development took place during the Interwar period, Lemvig's population continued to grow, reaching 4,574 inhabitants by 1930.

[7] After World War II, Lemvig expanded into two new suburbs: Østerbjerg and Rønbjerg Hage, again increasing the population to 6,371 by 1965.

[8] Prior to the Municipal reform of 1970, Lemvig was located in Skodborg Herred within Ringkjøbing County.

Lemvig's economy is based on traditional sectors such as metal, wood and furniture industry.

Among the largest employers in the town are KK Electronics, Egholm A/S, Cheminova and The Danish Coastal Directorate.

It was built by Architect Andreas Bentsen with the help of apprentices from Vallekilde Folk High School.