Its geographical position, straddling the gap between mountains and valleys, made this area a favourite spot for Etruscans and Romans to lay siege on the local Celtic Ligurian populations. The earliest town centre is said to be the old cluster of houses at Villola (Virola), sitting snugly at the foot of the Pietra di Bismantova, whose origins date back to the beginning of the Eleventh Century.
Castelnovo started to grow into an actual town at the time of Matilde of Canossa when she bequeathed the hamlet to the abbot of the Canossian Sant’Apollonio di Canossa monastery in 1111. Various fortifications were constructed at the time, including “Castrum Novum” built on the hill known today as “Monte Castello” that gave the town its name.
In 1188, Castelnovo ne’ Monti swore allegiance to the Municipality of Reggio Emilia for the first time. After being enfeoffed to the Dallo family, it ultimately came under the rule of the House of Este in 1409. After initially being governed by the podestà in Felina, Castelnovo became a regional seat of power itself and a major centre of government in 148, overseeing most of the mountainous area above Reggio Emilia. 17th century sources tell us that contemporaries considered the town to be “a sea port among the mountains” since its marked stalls sold fish, salt and oil brought up from nearby seaports (Luni/Lerici).
The House of Este continued to rule over Castelnovo and the mountains until 1859, with only two short interruptions. When the ancient supremacy of the House of Este finally waned, the status of Castelnovo was raised to that of district capital, and it subsequently became the hub of a single large municipality comprising the settlements at Vetto, Ramiseto, Busana and Collagna. The construction of the “military Lunigiana road” (today’s trunk road 63) was a boost for the old town centre.