History
Prior to British colonisation, Taunggyi was a small village of a few huts. The area lay on a wide shoulder of the Sittaung Hills of the Shan Hills and was populated by the Shan ethnicity at the time. The signs of the original village of Taunggyi are long gone, but nearby villages can still be discerned quite easily.
During British occupation, the town became the chief city and capital of the Southern Shan States. Taunggyi's modern development began in 1894, when the British moved their administrative offices from Maing Thauk (Fort Stedman) on the eastern shores of Inle Lake to the higher elevation of Taunggyi, for health and geographical reasons. Although geographically within the state of Yawnghwe, the town was denoted as a "notified area" by the British, exempt from the Sawbwa's administration. By 1906, there existed a thousand houses. Because of civil unrest throughout the Shan States during the early 1900s, Taunggyi served as the chief garrison for military police. Taunggyi also served as a supply centre for the Shan States, and catered to persons of many nationalities.
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