Dundaga baron once was one of the largest landowners of Courland, therefore during the second half of 19th century around the estate formed centre of economic and social life. Dundaga Central Square is dominated by its water tower, behind which starts Dakterleja, where from 1844 to 1854 worked one of the first ethnic Latvian doctors and linguist, J. Bars. Until the sixties of the 20th century from the Dundaga through Mazirbe and fishermen villages to Ventspils ran a Narrow gauge train. Today Dundaga attracts tourists with its spectacular castle, the Lutheran church, crocodile sculpture, Eizenberga pottery workshops and other objects.
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