First settlements in Obwalden date back to the Celts and the Romans. After 700 AD the Alemanni moved into the area. In 1291 Obwalden joined Nidwalden to form an alliance with Uri and Schwyz. In the 13th and 14th century Obwalden established its own local governance, despite having had a joint assembly with Nidwalden up to around 1330.

Traditional culture in Obwalden has been kept alive by many local organizations. There is traditional music, carnival, dances, costumes, theatres and festivals. There are also a number of modern artists, including Josef Garovi (composer), Caspar Diethelm (composer), Julian Dillier (poet), Franz Bucher (painter), Kurt Sigrist (sculptor) and Alois Spichtig (sculptor)

Small and middle-sized businesses dominate the economy of Obwalden. Many of them are specialists in areas such as miniature engines, synthetics, medical equipment or nano technology.

Traditional areas are still of great importance. Particularly forestry and related businesses are significant, as is agriculture. Agriculture in Obwalden is specialized in integrated dairy and meat farming. The farms are still family run.

Tourism is a major sector. Many facilities built for tourism now benefit the local industry and the population. One quarter of the population is directly or indirectly employed in the tourism sector.

The central location in Switzerland meant that Obwalden was able to establish itself as a significant tourist location in the 19th century. Two of the mountains, namely Pilatus and Titlis, are the main attractions. Winter sports, in particular skiing and snowboarding, attracts many tourist. The main resorts are Engelberg, Melchsee-Frutt, Lungern-Schönbüel, Mörlialp and Langis. During the summer hiking and mountaineering are the main attractions.

 

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