The area around Rødding was first inhabited around 3000 years ago, and was dotted with huts and burrows on the outskirts of the Farris Forest. The region was historically impoverished. This is evidenced by the city's original church which, due to the lack of resources at the time, is considerably smaller and simpler than many of the neighboring towns' churches.
In 1844 Rødding Højskole was built in the town. It was the first højskole, and remains the world's oldest folk high school.
In 1864, After the Battle of Dybbøl, Rødding came under Prussian control and the town became the seat of the northern region of Schleswig. Prussian rule put many restrictions on commercial trade which spurred agricultural development.[2] The region was reunified with Denmark in 1920 after a popular vote.[3]
Rødding municipality was created in 1970, and the region's eight parishes were merged. The town was the seat of the municipality (Danish, kommune), which covered an area of 273 km2, and had a total population of 10,915 (2005). Its last mayor was Tage Sørensen, a member of the Venstre (Liberal Party) political party.