The rivers flowed in an area where a lot of land was periodically inundated. These richly grassed 'meersen' ("water-meadows": a word related to the English 'marsh', but not meaning exactly the same, a 'meers' is not permanently under water) were ideally suited for herding sheep, the wool of which was used for making cloth. In fact, Ghent was during the Middle Ages the most important city for cloth.
The wool-industry, originally established at Bruges, created the first European industrialized zone in Ghent in the High Middle Ages. The mercantile zone was so highly-developed that wool had to be imported from England. This was one of the reasons for Flanders' good relationship with England. Ghent was the birthplace of John of Gaunt, Duke of Lancaster. The trade with England suffered significantly during the Hundred Years War.
The city recovered in the 14th century, while Flanders was united with neighbouring provinces under the Dukes of Burgundy. High taxes led to a rebellion and eventually the Battle of Gavere, in which Ghent suffered a terrible defeat at the hands of Philip the Good. Around this time the center of gravity in the Low Countries started to shift from Flanders (Bruges–Ghent) to Brabant (Antwerp–Brussels), although Ghent would continue to play an important role.
In 1500 Juana of Castile gave birth to Charles V, who became Holy Roman Emperor and King of Spain. Although native to Ghent, he punished the city after the 1539 Revolt of Ghent and obliged them to walk in front of the emperor barefoot with a noose (Dutch: strop) around the neck. Since this incident the people of Ghent are called "Stroppendragers" (noose bearers).
The late 16th and the 17th century brought devastation because of the Religious wars. At one time Ghent was a calvinistic city, but eventually the Spanish army reinstated catholicism. The wars ended the role of Ghent as a center of international importance.
In the 18th and 19th century Ghent the textile industry flourished again in Ghent. Lieven Bauwens introduced the first mechanical weaving machine on the European continent, of which he smuggled the plans out of England.
Ghent was also the site of the signing of the Treaty of Ghent which formally ended the War of 1812 between Britain and the United States of America. After the battle of Waterloo Ghent became a part of the United Kingdom of the Netherlands for 15 years. In this period Ghent got its own university (1817) and a new connection to the sea (1824–27).
After the Belgian Revolution, the first Belgian trade-union originated in Ghent. In 1913 there was a World exhibition in Ghent. As a preparation for these festivities the Sint-Pieters railway station, was completed in 1912.
Much of the city's medieval architecture remains intact and is remarkably well preserved and restored. Its center is the largest carfree area in Belgium. Interesting highlights are the Saint Bavo Cathedral with the Ghent Altarpiece, the belfry, the Gravensteen castle, and the splendid architecture along the old Graslei harbour. Ghent established a nice blend between comfort of living and history - it is not a city-museum. The city of Ghent houses also three béguinages and numerous churches, among which the Saint-Jacobs church and the Saint-Nicolas Church are the most beautiful examples. There is an opera house and a few theatres. Highlights of modern architecture are the University buildings (the "Boekentoren" or Book Tower) by Henry Van de Velde.