Although Vaduz is the best-known village in the principality internationally, it is not the largest; neighbouring Schaan has a larger population.

The name can be traced back to Old Rhaeto-Romance root auadutg 'aqueduct', which in turn evolved from the Latin aquaeductus.

[4] In the 17th century the Liechtenstein family was seeking a seat in the Imperial diet, the Reichstag.

However, since they did not hold any territory that was directly under the Imperial throne, they were unable to meet the primary requirement to qualify.

[5] The family yearned for the added power a seat in the Imperial government would bring, and therefore sought to acquire lands that would be reichsunmittelbar, or held directly from the Holy Roman Emperor himself, without any intermediate feudal patronage.

After some time, the family was able to arrange the purchase of the minuscule Herrschaft ("Lordship") of Schellenberg and the countship of Vaduz (in 1699 and 1712, respectively) from the Hohenems.

Tiny Schellenberg and Vaduz possessed exactly the political status required: no feudal lord other than the Emperor.

[citation needed] Thereby, on 23 January 1719, after the purchase had been duly made, Charles VI, Holy Roman Emperor, decreed Vaduz and Schellenberg were united, and raised to the dignity of Fürstentum (principality) with the name "Liechtenstein" in honour of "[his] true servant, Anton Florian of Liechtenstein".

As testimony to the pure political expediency of the purchases, the Princes of Liechtenstein did not set foot in their new principality for over 120 years.

[citation needed] Vaduz is located in the Oberland electoral district, which has fifteen seats in the Landtag of Liechtenstein.

The castle is visible from almost any location in Vaduz, being perched atop a steep hill in the middle of the village.

The building is an architectural landmark built by the Swiss architects Morger, Degelo and Kerez.

[16] Vaduz is connected to Switzerland over the Rhine river by the Vaduz–Sevelen footbridge [de], or the Werdenberger-Binnenkanal bridge for motor vehicles, which was opened in 1975.