The catalyst for the enclaves of Baarle-Hertog ("ducal Baarle") took place in the year 1198, when the Count of Holland sought to expand his territory at the expense of the Duke of Brabant. The area in which the village of Baarle is located, lay within the territory of the Duke of Brabant, but he gave it to the Lord of Breda in exchange for his loyalty, effectively creating a political and military buffer between the Duchy of Brabant and the County of Holland.

However, the Abbey of Thorn owned certain plots of land within Baarle, which were exempt from having the Lord of Breda as their liege; instead remaining part of the clerical lands of the Archbishopric of Liege.

This was all very standard for the time; but became a problem in the aftermath of the Dutch Revolt and Eighty Years War in 1648 because the peace treaty between the Dutch Republic and Spain had not specified the exact border between the Northern and Southern Netherlands in this vicinity, which now ran through the village.

In 1661 a court case over disputed land use in Baarle led to the Dutch States General working out a deal (which satisfied none of the parties involved; and merely formalized the status quo) with the Southern Netherlands in which it formally established 30 enclaves, 22 of which then became a part of the Southern Netherlands instead of the Dutch Republic.

During the 18th and 19th century, from time to time proposals were made to resolve the complex nature of the Dutch-Belgian border, but all floundered due to political red tape or unwillingness of one side to accord the proposal of the other.

In fact, only in 1995 were the borders officially and definitely settled.