In the Middle Ages, the settlement of Piwniczna was located along a busy merchant trail, which joined Poland with Upper Hungary (now Slovakia).

To protect the route and increase tax revenue, on July 1, 1348, in Kraków, King Kazimierz Wielki granted a privilege to a wealthy resident of Nowy Sacz, Hanko, upon which a brand new town was to be established in an oxbow of the Poprad river.

1590 the town was governed by starostas from Nowy Sacz, but good times ended during catastrophic Swedish invasion of Poland (1655 - 1660), when Piwniczna was ransacked and burned.

The municipality of Piwniczna-Zdrój is currently characterized by a negative balance of migration (both permanent and temporary), with more inhabitants leaving than arriving.

The City Council suggests that the rate of migration is larger than what the statistics indicate, because many people, especially those going abroad, do not officially declare their absence.

Municipal Council of Piwniczna Zdroj is currently working under 2007–2013 Development Plan, where they have simply voiced and published recognition of the need and inability to meet or financially deal with any of major issues impeding on their future correction of problems, and growth stimulation.

Some of the issues they point out to address, is the depletion and contamination natural resources, ranging from poor agricultural maintenance care affecting production and water quality, to items such as use of 80% household usage of low grade coal and coke for heating, to poor monitoring surface and ground water monitoring.

With the main focus concerning tourism which is primarily being sold and advertised as health and wellness, this is finally being acknowledged as being a topic of interest that should be for the community.

This data is stated by Council, which slightly differs from the Nowy Sącz District statement of the lower 18.7% unemployment rate in the public investment offers.

Considering the recent History of Poland (1945–1989), its shortage economy, black market and the majority of the population supported Solidarity (Polish trade union), it is unclear how the community has recovered.

The European Union, as well as the rest of the world has investigative and corrective mechanisms in place, which trickle down to the micro level.