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Inveraray enjoys a picturesque setting on the shores of Loch Fyne, where it meets Loch Shira. It was built on the site of an earlier fishing village in the mid 1700s by the 3rd Duke of Argyll, Chief of the powerful Clan Campbell. He demolished the original village to give his rebuilt castle more space, and rehoused the population in a new town that is one of the most attractive in Scotland.
The original village of Inveraray stood in the parkland that now extends south east from Inveraray Castle to the main A83. It had grown following the move of the Campbells to "old" Inveraray Castle in the mid 1400s from their previous stronghold at Innis Chonnell Castle on an island in Loch Awe.
Inveraray was well enough established to become a burgh of barony in 1472 and a royal burgh in 1648. With a good natural harbour and lying at a key focal point in the limited road network across Argyll, it had effectively become the legal and administrative centre for the county by the early 1700s. Its development went hand in hand with the growing power of the Campbells and the importance of their seat at Inveraray Castle.