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Kustaanlinna is named after the Villa Gustafsborg, that once located in the area. The Villa was built by Gustaf Vallén in 1860 and was later owned by the hospital official J.J. Sundén. In 1900 the villa made way to the municipal hospital nowadays known as Vaasa Central Hospital.

In 1900 a public swimming facility was built for men on the cape of Kustaanlinna. The building burned down in 1909 in an arson but since a bathhouse was needed, funds were granted to build a new one. In 1933 the women’s bathhouse was moved from near Kruununmakasiini to Kustaanlinna. A beach was made between the two bathhouses.

The men’s bathhouse was in use all the way to the 1970s, and back then the outdoor bath house once built on stone foundations on water was now on dry land as the shoreline had receded because of the land uplift. The women’s building was destroyed in a fire in the August of 2007 but was rebuilt the next year following the blueprints of the 1933 building. Cubicles were removed from the new building and the terrace was redesigned to have  several levels, but the overall façade was kept the same.