Danish attempts in the 1670’s to regain lost provinces were successfully thwarted by King Karl XI (1655–97).

The Navy was the principal instrument by which Sweden could exert effective control of her new territories on the other side of the Baltic, and after years of deliberations, it was finally decided to establish a new base for the Navy in the eastern part of the Blekinge archipelago. Unlike Stockholm, this naval base was free from ice for large parts of the year, and furthermore would be able to assist the policy of Swedification in the former Danish provinces.
The rugged terrain of Trossö and the other nearby islands provided an extremely favourable location for a naval base. In addition, there was a narrow and deep fairway, which could easily be defended and sufficient room in which to construct a large, protected dock. From the very beginning the new base was envisaged as a united whole, complete with fortifications, harbours, dockyards and a civilian town with supply, commercial, commerce and administrative structures.

Founding of the city

In the late autumn of 1679, the King and his entourage stepped ashore on Trossö. Without delay the Kingdom’s greatest shipbuilders, architects, fortification engineers and builders began their labours. Streets, squares, and the various quarters of the future town were marked out, and in 1680 Karl XI granted a charter to Karlskrona. The whole undertaking was carried out with single-minded energy and determination. After nearly thirty years a large part of the quarters had been built.

In order to encourage trade and settlement in the new town, the King removed the city privileges of the neighbouring boroughs of Ronneby and Kristianopel and their inhabitants and tradesmen were more or less compelled to move to Karlskrona. Almost from the very beginning Karlskrona had a markedly international character. A considerable number of Germans, in particular tradesmen, took up residence in the town and experienced craftspeople were brought from the Finnish province of Österbotten and the Skeppsholmen yard in Stockholm to work at the Navy Yard.

The Ideal City

It is probable that the planners of Karlskrona were influenced by the naval bases of Chatham in the southeast of England, built in 1547, and Rochefort on the west coast of France, built in 1666 and of the Arsenal in Venice. However, the planning of the city was not only limited to military needs. Here the Baroque influence dominates with its wide streets and monumental buildings. The city plan also reveals a quest for the classic ideals with grid plans and large squares. The French royal palace of Versailles and ideals from ancient Rome have made a strong impression.

At the end of the 17th century and the beginning of the 18th century, Karlskrona was regarded as symbol of Sweden’s Great Power status in Europe.

Characteristic of Karlskrona were the very wide streets and the monumental square with its public buildings. In this classic grid plan, the civilian city has its centre in the highest location, Stortorget, which is surrounded by stately buildings for religion and the administration of justice. The two churches by the square represent the two basic forms of the Renaissance, the round temple, and the basilica.

The grid plan is crossed diagonally by two streets, Borgmästaregatan and Södra Smedjegatan, which leads to Amiralitetstorget. Here a palace was planned to be built for the central command function of the naval fleet, the Admiralty College. This site was intended both as an architectural centre in the city plan as well as the centre of power in Karlskrona. The intended grand palace was never built as the royal monarchy did not accept self-governing offices outside of the capital. The Admiralty College was temporarily housed in a small wooden building. In 1776 the authority was moved to Stockholm. Instead, Bastion Wachtmeister was built where the palace would have been located, a central fortress as part of the Enclosing wall that kept the military and civil parts of the city separate. Today you can find the Admiralty Belfry in this location. The centre of the city instead became Stortorget, the main square.

The Golden Age/Heyday

When Gustav III (1746–92) took power in 1771, the Naval Base entered a new period of prosperity. In the earlier part of this century, the military balance in the Baltic Sea had changed. Russia had extended its borders to the Gulf of Finland where it established the future capital of Saint Petersburg and the naval base of Kronstadt. In 1748 Sweden began to build the Sveaborg fortress outside Helsinki to protect her eastern frontiers. The Swedish Navy was divided into two parts, the Main Fleet based in Karlskrona and the Archipelago or Army Fleet, based in Stockholm and at Sveaborg. The Archipelago Fleet, or Army Fleet, had been created at the initiative of the chief of Suomenlinna, Augustin Ehrensvärd.

A completely new approach to shipbuilding and ship maintenance was introduced. There was a need to extend the life of warships, and the Swedish navy tried to solve this by constructing large dry docks for winter storage and construction. Suomenlinna also had a large dry dock built. Karlskrona already had the Polhem Dry Dock, which when it was completed was called "the eighth wonder of the world".

af Chapman

In 1782 Fredric Henric af Chapman was appointed Admiral Superintendent and commissioned to create a completely new fleet for Gustav III’s coming war with Russia. Chapman, who came from an English family of ship builders, was born in Göteborg on the west coast of Sweden. He had studied at French, Dutch and English dockyards and in Finland acquired an in-depth knowledge of the wood and timber needed in shipbuilding. Chapman introduced new mathematical methods to ship design. He had previously worked with Augustin Ehrensvärd at the Swedish bases of Stralsund and Sveaborg where he had constructed new types of vessels for the galley fleet. Chapman had previously built various ships for the Navy as well as drawn up plans for the major warships that would later be launched in Karlskrona.

As Admiral Superintendent, Chapman reorganised the entire shipbuilding process at the dockyard. He introduced the principles of standardised production and in the amazingly short time of three years saw the construction of no less than 10 ships of the line and 10 frigates. Until then it had taken several years to build but a single vessel.

In 1784 Augustin Ehrensvärd’s son, Admiral Carl August Ehrensvärd, was appointed Commander-in-chief of the Karlskrona Naval Base. A man of letters, well versed in philosophy and art history, he had travelled to Italy where he had been inspired by the classical ideals of Greek and Roman architecture and together with Chapman, he created several impressive buildings at the Navy Yard. These included the Plans and Ships’ Models building, the Sculptors’ workshop and the No. I Storehouse.