The castle was constructed around 1100 as a castle by the cadet branch of the House of Wittelsbach. In 1182, the last Count of Dachau, Konrad III, died without issue and Duke Otto I of Bavaria took possession of it shortly thereafter. The original castle was demolished between 1398 and 1403. In 1467, Sigismund, Duke of Bavaria resigned his rule of Bavaria-Munich and then kept only the new duchy of Bavaria-Dachau as his domain until his death in 1501.
William IV of Bavaria and his son Albert V ordered the construction of a Renaissance style four-wing palace with a court garden on the site of the old castle. The new building was designed by Heinrich Schöttl; construction began in 1546 and was completed in 1577. It later became the favoured residence of the rulers of Bavaria. Also, close to Dachau Palace was the Schleissheim Palace that started out with a renaissance country house and hermitage founded by William V, Duke of Bavaria.
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