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Bracebridge, branded as "The Heart of Muskoka", is located geographically in the centre of Muskoka and is the headquarters for the district government. The community was incorporated as a village in 1875 and a town in 1889. Library service at the Bracebridge Public Library began in 1908 when the original Carnegie building was constructed. The 2,800 sq. foot Muskoka stone structure was expanded to 8,400 sq. feet in 1984 with an addition that maintained the heritage character of the building while allowing for improved service and collection space. The Library marked 100 years of service to the community during its centennial in 2008.

With the advent of regional government in January 1971, the Town of Bracebridge and the surrounding townships were brought together as one municipality. It encompasses 62,119 hectares and has five wards: Bracebridge, Monck/Muskoka, Macaulay, Draper and Oakley. The naming of Bracebridge has been traced to a postmaster who took the name from the book, "Bracebridge Hall" written by American author Washington Irving.

The Town's population according to the 2011 Census is 16,000 people.

In 1955, Santa's Village was established by a group of local businessmen who felt that Bracebridge was the appropriate location for such an attraction because it is on the 45th parallel, halfway between the equator and the North Pole. Santa's Village attracts over 80,000 people per year.

Bracebridge's tourism history dates to the 1860's where visitors from Toronto ventured north by train and boat. A number of cabin resorts and resorts have disappeared over time.  Resorts that are operating in Bracebridge include Caribou Lodge on Wood Lake and Patterson-Kaye Resort and Spa. There are numerous camps in the rural areas of town including Camp Muskoka, Camp Wenonah and Camp Tamarack.