Toucheng holds a special place in the chronicles of Taiwan as the oldest Han settlement in Yilan County. The town's name, which translates as "First City" or "Head City," reflects its historical status as a pioneer in the development of the island's east coast. The official starting point of the town's history is 1796, when settler leader Wu Sha established a fortified settlement here, originally named "Touwei" (First Fort).
The rapid transformation of a small fortification into a prosperous town was driven by a combination of important geographical and logistical advantages:
- Strategic Position: Located in the north of the Lanyang Plain, the town served as a natural gateway to the region. Before the construction of modern highways and tunnels, the main routes connecting the county with the north of the island passed through here.
- Wushi Harbor: The presence of a convenient harbor played a decisive role. The port, with its famous black rocks, became the main maritime hub for trade with the mainland and other parts of the island during the Qing Dynasty.
In the 19th century, Toucheng established itself as the region's primary economic center. Prosperity was built on the export of rice and camphor, as well as the import of textiles and ceramics. The wealth of local merchants was reflected in the architecture of the famous Toucheng Old Street, where buildings gracefully blending traditional Southern Chinese style and Baroque elements have been preserved.
The challenging living conditions of the pioneers gave rise to unique rituals that are still observed today. The most famous is the "Qiangu" (Grappling with the Ghosts) festival — a spectacular competition involving climbing tall bamboo towers, which was originally held to commemorate the spirits of those who died while developing these lands.