In 1735 a nursing home, the so-called Gravenreuth Stift, was founded by a private foundation in St. The cost of the building exceeded the funds of the foundation, but Margrave Frederick came to their aid.
Bayreuth experienced its Golden Age during the reign (1735–1763) of Margrave Frederick and Margravine Wilhelmina of Bayreuth, the favourite sister of Frederick the Great.
In 1716 a princely porcelain factory was established in St. The first 'castle' in the park of the Hermitage was built at this time by Margrave George William (1715–1719).
In 1721 the town council acquired the palace of Baroness Sponheim (today's Old Town Hall or Altes Rathaus) as a replacement for the town hall built in 1440 in the middle of the market place and destroyed by fire.
The syllable -rute may mean Rodung or "clearing", whilst Baier- indicates immigrants from the Bavarian region.