 The small settlement that had grown up around the castle was developed into a medieval city, with fortifications and market rights, around the mid 13th century, likely under Lütold VI.In 1269, Lütold was forced to cede the fief back to St. Gallen, as he was in financial difficulties following his feuds with both the city of Zürich and with count Rudolf von Habsburg
The abbey pawned the fief to Walter von Elgg in 1273, but it was acquired by Rudolf von Habsburg, now elected King Rudolf I of Germany, in the following year.Grüningen held city rights since before 1370 (first record of the city seal and coat of arms), as one of four localities in the canton of Zürich which held city rights before the end of the medieval period, the other three being Zürich itself (1218), Winterthur (1264) and Elgg (1371).