The first settlements in the territory of what would later become Andorra began in the Ice Age, but there were no large groups inhabiting this territory until after the retreat of glaciers. Archeological excavations demonstrate that from 3500-2000 BC small groups of people lived in valleys near the Rio Valira and in caves in what would later become known as Andorra. Later, groups of people migrated to the lower mountain levels, where they began to live in small groups or villages. It is a scientifically proven fact that people in those settlements used bronze tools. Worshipping the spirits of nature, forests and lakes, ancient Andorrans constructed megaliths and dolmens. Iberian coins were also found in the territory. It is believed that the name Andorra comes either from Iberian words “ando” (highest) and “ore” (iron), or from Celtic words “an” (blow) and “dor” (wind).

Charlemagne (742-814) is considered to be the founder of what is today known as Andorra. According to legend, several thousand Andorrans led by Mark Almugaber helped the army of Franks to win the battle against Arabic invaders. As a sign of gratitude, Charlemagne proclaimed Andorra an “independent nation” whose citizens were protected under his favor. The state of Andorra was founded as a buffer for the protection of the Frankish empire from Arabic invaders.

In 817, together with the lands to the south of the country, Andorra came under the sovereignty of Frankish empire. In 819 Louis the Pious (778-840), a son of Charlemagne who in 814 became the Emperor of Franks, gave the Great Charter of the Liberties (Magna Carta) to the citizens of Andorra. In the summer of 819 Catalan bishops wrote and ratified a so called “Letter of freedom”—this document became the basis of independence for the communities of cattlemen and farmers, it was further officially named “Endor”, a biblical name. 

In 1133 the rights for the eternal usage of Andorran valleys were sold by the count of Urgell to the bishop Berenger. Spanish bishops became feudal lords and the citizens of Andorra were obliged to pay them annual tribute. In the middle of the XI century the defense of Andorra became the responsibility of Caboet noble family; the representatives of this family obtained the proprietorship for Andorran valleys in exchange for the oath of fidelity to the bishops.

In 1419 Andorra gained permission for calling an elective body – “The council of land” that later evolved into the General Council. The heads of the five most powerful Andorran families obtained the right to elect their representatives into this council.

In later centuries, Andorra managed to keep its independence from powerful neighbors on both sides of the Pyrenees. Andorrans enjoyed the benefits of a neutral state: they didn’t serve in the army, didn’t pay military contributions and took profit from free transfers of goods through the Pyrenees.

In 1580 the “House of the Valleys” was built in Andorra la Vella, nowadays the offices of the Government, Court and prison are housed in it. Now the prison is situated in other place in Andorra la Vella.