As the Swedish government sought to strengthen its position, the need for permanent meeting places arose.

This took place on a peninsula in the Ume River, upstream from the present city center, at Öhn (now known as Gammplatsen, which had previously served as a major winter settlement for the Sami in the area).

Öhn was designated as a church and marketplace in southern Lapland by Charles IX in 1607, and Lycksele thus celebrated its 400th anniversary in 2007.

In 1785, the parish assembly decided to build a new church and moved the marketplace to a location known as Heden a bit downstream.

After the arrival of the railway, Lycksele developed into a typical small town with smaller industries and important public institutions such as a hospital, a high school, and a district court.