The municipality was connected to the growing railroad network in 1874 and by the 1890s was home to several large factories. The establishment of the Tavannes Watch Co. in 1895 turned the village into a major watchmaking center. To house the growing population a number of Swiss chalet and Art nouveau style houses were built between 1900 and 1930. The Royal Cinema opened in 1918 and turned Tavannes into regional cultural center. The population dropped in 1966 when the Tavannes Watch factory closed and dropped again in 1986 when a major manufacturer closed. The population began to slowly increase with the construction of the A16 motorway.