The beginning of the town are related to so called “Muszyna Key” lands owned by the bishops of Krakow since 1280. The lands, originally mainly forests, were gradually inhabited, firstly in the Polish-German settlement (14-15th century) and later by Carpathian shepherds (known as Ruthenians or Rus) settlement (16-17th century). The village name appears firstly in the founding document issued on January 8th 1547 in which the bishop of Krakow Samuel Maciejowski permits Danko from Miastko (today Tylicz) a foundation of a new settlement on a “raw root and two plots of pine forest”. The new settlement was called “Krzenycze”, which means ‘fountain’ or ‘spring’. The first residents were farmers and shepherds, later also woodworkers and wavers (from the very beginning the settlement had its own corn and weaving mill). Parish documents of the early 17th century mention the existence of a Greek-Catholic church and the so-called “popostwo” (a Ruthenian parish district). In 1668 Krynica counted 25 field plots (so called ‘łans’ which at that time were a measure of land) owned by 59 settled peasants.
The local inhabitants were active participants in the political turmoils of 17th and 18th centuries. During the Swedish invasion (1655-1660) the Muszyna State infantry was part of the regular army (unfortunately, most of the unit fell or was captured by the Swedes in an ambush). Several years later, the same unit formation defended the gates of Nowy Sacz. The Bar Confederation, stationing here since 1769 had a strong influence on Krynica and its surroundings. The name of the “Huzary” Hill east of Krynica commemorates the defeat of Bar Confederates by Hungarian hussars which took place here in 1772. In the year 1770, the Bar Confederates were joined by Kazimierz Pulaski, who became its military leader. A monument designed by Stanisław Wojcik and unveiled in Krynica in 1929 (an eagle setting off into the sky from the mound summit) commemorates Pulaski’s stay in the local area. The Bar Confederation was effectively stifled by the Austrians. By 1770, the whole area around Nowy Sącz and Stary Sącz was incorporated into Galicia, which after the partitions of Poland was under the reign of Austria. The Muszyna State was liquidated and Krynica fell under the Austrian reign).
