The main focal point on the river is the historic centre of Dresden, the capital of the Electors of Saxony, one of the wealthiest lands in Germany, from 1547. This fortified city grew from the Middle Ages with its main part on the south side of the river. After a fire in the late 17th century, the Electors Augustus I and Augustus II modernized the city in Baroque and Rococo styles, including the Zwinger. The north bank became known as Neustadt (New Town) and the German town on the south bank as Altstadt (Old Town). From the end of the 18th century, the importance of the river for shipping increased rapidly. Towpaths were made along it for towing ships, and these paths still exist. The economy of the town developed rapidly in the 19th century, in a large measure as a result of the completion of rail connections to Berlin and Leipzig. This led to improving the navigability of the river (Law of 1844). Dykes were built, and old river arms were cut off from the main river. The agricultural fields gradually changed into meadows and gardens. New suburban areas and residential villas were built in the 19th and early 20th centuries.
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