Zug is the capital of the Swiss canton of that name. Zug is a picturesque small town at the northeastern corner of the Lake Zug and at the foot of the Zugerberg (992 m (3255 ft.)), which rises gradually, its lower slopes thickly covered with fruit trees. Its population, 6,508 in 1900, numbered 23,000 in 2004, the town is mainly German-speaking and predominantly Roman Catholic. The town, first mentioned in 1240, was called an "oppidum" in 1242 and a "castrum" in 1255. In 1273, it was bought by Rudolph of Habsburg from Anna, the heiress of Kyburg and wife of Eberhard, head of the cadet line of Habsburg. Part of its territory, the valley of Aegeri, was pledged by Rudolph in 1278 as security for a portion of the marriage gift he promised to Joanna, daughter of Edward I of England. She was betrothed to his son Hartmann, but his death in 1281 prevented the marriage from taking place. The town of Zug was governed by a bailiff, appointed by the Habsburgs, and a council, and was much favored by that family.

Several country districts (e.g., Baar, Menzingen, and Aegeri) each had its own "Landsgemeinde" but were governed by one bailiff, also appointed by the Habsburgs; these were known as the "Aeusser Amt," and were always favorably disposed to the Swiss Confederation. The lake shore has been embanked and forms a promenade, from which glorious views of the snowy peaks of the Bernese Oberland, as well as of the Rigi and Pilatus, are gained. Zug acts as an important transportation node. The SBB-CFF-FFS and other railways link at Zug Railway Station for Cham - Horgen - Zürich, Steinhausen - Affoltern am Albis, Arth-Goldau - St. Gotthard - Ticino and Italy, and Rotkreuz - Luzern. The A4 motorway and other main roads connect Zug with the rest of the nation. Water transportation has its node on Lake Zug at Zug.

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