Archaeologists have also found over forty lake-shore settlements, known as pile dwellings, on the shores of Lake Zug from the epoch of the first settled farmers in the Neolithic period (5,500-2,200 BC).

The well-known, historically researched lake-shore village 'Sumpf' (the swamp), dated from the late Bronze Age (up until 850 BC).

The first written document on the area originates from the year 858, and refers to King Ludwig the German giving the farm Chama (Cham) to the Zürich Fraumünster convent.

At this time, the area of present-day Zug belonged to completely different monastic and secular landlords, the most important of whom were the Habsburgs, and who, in 1264, inherited the Kyburg rights and remained a central political power until about 1400.

The Aeusser Amt or Outer District consisted of the villages and towns surrounding Zug, which each had their own Landsgemeinden but were ruled by a single Habsburg bailiff.

Zug was important as an administrative center of the Kyburg and the Habsburg district, then as a local market place, and, thereafter, as a stage town for the transport of goods (particularly salt and iron) over the Hirzel hill towards Lucerne.

In 1379, the Holy Roman Emperor Wenceslaus exempted Zug from all external jurisdictions, and in 1389 the Habsburgs renounced their claims, reserving only an annual payment of 20 silver marks, which came to an end in 1415.

Finally in 1415, the right of electing their landammann was given to Zug by the Confederation, and a share in the criminal jurisdiction was granted to the Aeusser Amt by German king Sigismund.

[4] The alliance of the four forest cantons of Uri, Schwyz, Unterwalden and Lucerne with the city of Zürich in 1351 set much in motion.

It is likely that this was more for political than economic reasons: the Lucerne market was very important for central Switzerland, but also strongly dependent on the city of Zürich.

Simultaneously, Zug expanded its territory, acquiring a number of rural areas in the form of bailiwicks (Walchwil, Cham, Gangolfswil [Risch] Hünenberg and Steinhausen, and Oberrüti, now part of the canton of Aargau).

Zug became a confederation in itself – with the town and its subject territories, and the three outer ('free') municipalities, Ägeri, Menzingen (with Neuheim) and Baar.

In 1385, Zug joined the league of the Swabian cities against Leopold III of Austria and shared in the victory of Sempach, as well as in the various Argovian (1415) and Thurgovian (1460) conquests of the Confederates, and later in those of Italy (1512), having already taken part in the occupation of the Val d'Ossola.

Between 1379 (Walchwil) and 1477 (Cham), Zug had acquired various districts in its own neighborhood, principally to the north and the west, which were ruled till 1798 by the town alone as subject lands.

In 1866, the American George Ham Page founded the first European condensed milk factory in Cham, which later merged with Nestlé.

In the second half of the century, dynamic expansion took place and Zug became a national and international financial and trading centre, aided by its proximity to Zürich, and by an attractive tax policy.

In parallel, large industrial and commercial zones evolved; employment increased rapidly; the population rose sharply, and the building boom skyrocketed.

Over the same time period, the amount of recreational space in the municipality increased by 8 ha (20 acres) and is now about 2.53% of the total area.

[11] The City Council (Stadtrat) constitutes the executive government of the Town of Zug and operates as a collegiate authority.

[21][22] Zug is a popular location for incorporation of companies, such as Siemens Building Technologies, and Nord Stream AG.

[23] The lake shore has been embanked and forms a promenade, from which views of the Rigi and Pilatus, as well as of the snowy peaks of the Bernese Oberland, are gained.

Several fine modern buildings rise on or close to the shore in the town and to its south, whilst to the southwest is a convent of Capuchin nuns, who manage a large girls' school and several other educational establishments.

The Museum of Prehistory Zug houses an important collection of archaeological remains, especially from the late Bronze Age (urnfield culture) settlement of Zug-Sumpf.

Two thirds of young people go into vocational education, connected to an apprenticeship, joining the professional world after the 9th grade of secondary school.

In addition, there are the three former non-state teacher training colleges in Menzingen, Holy Cross in Cham and St. Michael in Zug.

There are also six technical colleges (for business, computer science, engineering design, naturopathy and homeopathy, child education, and rescue services).

In 2022 the European Institute of Management and Technology (EIMT) has been duly established in the Canton of Zug, Switzerland as a Business, Management and Technology Tertiary education school offering bachelor's, master's and doctorate degrees, through online, onsite or hybrid mediums and through other schools worldwide under the aegis of the laws, regulations and authorities of Switzerland.

The European Institute of Management and Technology has been granted Accreditation for two years by the Diplomatic Research and Policy Foundation (DRPF).

The range of educational institutions is a key factor for location in the globalized world of competition, especially for foreign employees, the so-called 'Expats'.

These vessels belong to the Zugersee Schifffahrt, a partner of the local public transport executive, ZVB Zugerland Verkehrsbetriebe.