Until 1975 Auchtermuchty was a royal burgh, established under charter of King James V in 1517. There is evidence of human habitation in the area dating back over 2,000 years, and the Romans are known to have established a camp in the southeast corner of the town. In the past, the linen industry was a major source of work in the town, but in the early 18th century the firm of John White was established, bringing the town its first foundry (there were two eventually). The town also had a distillery - Stratheden Whisky Distillery, set in the town centre - from 1829 to 1926, but it had to close when Prohibition in the United States drastically reduced the demand for its products. The town nowadays is a quiet but thriving community, situated in the Scottish countryside, where there are several local recreational footpaths. There is a modest range of local industry, but most people of working age travel out of the town for employment.