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The hamlet is located four kilometers south of Betzenstein and lies at an elevation of 562 m above sea level.
Through the administrative reforms carried out at the beginning of the 19th century in the Kingdom of Bavaria, the independent rural community of Spies was established, which also included the parish village of Riegelstein as the seat of the municipality, the villages of Eichenstruth and Illafeld, as well as the isolated homestead of Eibenthal. The locality of Schermshöhe, which was later assigned to the municipality of Spies, did not exist at that time. The seed for the creation of Schermshöhe is an inn that was built in 1870 on a then uninhabited mountain peak. The builder of this house was Konrad Scherm, a former forester, who constructed the tavern on a piece of land that had been given to him for his retirement.

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