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The founder of the town of Yverdon-les-Bains, then known simply as Yverdon, Duke Pierre of Savoy built a powerful castle with thick walls and round towers on the banks of the river Thiel for its defence. The castle stands on the central square of the town and is adjacent to the town hall.

On the site of the present structure stood a large round tower built in 1235, which belonged to Amédée III de Molfacon-Montbélard, lord of d'Aubray. In 1260, Amédée III sold it to Peter of Savoy. This transaction was probably not voluntary.

The quadrangle-shaped castle was built in 1258-1265 by the Freemasons father and son Jean and Jacques de Saint-Georges. At the end of the 13th century, Beatrice de Fassigny, daughter of Peter of Savoy, returned the chateau and all the surrounding lands with her husband's consent to Amédée III's son Jean Ire de Molfacon.

In 1536, when the town of Yverden became part of the canton of Bern, the local chateau became the residence of the governors sent from Bern. This continued until 1798, when the Republic of Helvetia was founded by the French. The castle became the property of the state.

In 1805, after the foundation of the canton of Vaud, the town of Yverdon bought the old castle and gave it to Johann-Heinrich Pestalozzi to open an educational institution here. Pestalozzi, a renowned teacher, enthusiastically took on the task of educating street children, discovering and developing their talents in a variety of scientific fields. Pestalozzi's school worked in the castle until 1825. Then there was a short break, and in 1838 a regular school was opened here, which lasted until 1974, i.e. more than a century.

In the 20th century, the Chateau Iverdon was reconstructed twice: in 1920 it was restored by the architect Ottto Schmid, and in 1956 by Pierre Margot.

Nowadays the chateau houses the Historical Museum, which was founded in 1764. It is dedicated to the history of the region. Particularly interesting is the section dedicated to the Celtic, ancient Roman and Burgundian eras.