The superimposition of the inner-German frontier caused severe economi
c difficulties for localities along the eastern boundary of the Federa
l Republic. Their peripherality was fundamental in the granting of ass
isted area status to the linear Zonenrandgebiet. The removal of this i
mpenetrable frontier after November 1989 has created an unparalleled e
conomic situation. The paper examines the socio-economic impacts on th
e North Bavarian section of the Zonenrandgebiet which is characterized
by its dispersed industrial base and lack of higher-order urban centr
es. Evidence is presented of rapid upturns in population growth and ec
onomic activity, together with a large inflow of commuters from the fo
rmer East Germany and Czechoslovakia, following frontier opening. Traf
fic, environmental pressures and living costs have also increased. Bot
h positive and negative impacts are strongest in districts contiguous
with the former frontier. Long-term development prospects hinge on its
newly-gained centrality within Germany. Substantial local benefits ar
e anticipated from transport investments associated with the Deutsche
Einheit programme, but they are unlikely to induce a major reshaping o
f the German space-economy; this will be dominated by the rivalry betw
een the largest metropolitan centres. A more modest role as a 'bridgeh
ead' for the re-integration of the new Lander is the probable outcome.