The idea for a new district in the northeastern Hardtwald forest arose in the 1950s and 1960s due to the rapid increase in Karlsruhe's population and the resulting demand for housing. Ground was broken in 1957, and the first residents moved in in 1958. This led to the development of what is now known as Waldstadt (Forest City). Waldstadt is accessible via Karlsruhe's light rail line 4, which originally terminated at the "Jägerhaus" (Hunter's Lodge). Today, the line extends to the Europaviertel (European Quarter).

The development brought new housing options for single-family and terraced houses, as well as new schools of all types – including the European School and the Waldorf School. In addition, various sports facilities and the Fächerbad (a public swimming pool complex) were built. Waldstadt was designed for 25,000 inhabitants, but currently has approximately 12,000. At one point, a settlement for more than 35,000 people was planned on Blankenloch land. The anticipated population growth failed to materialize and declined significantly, rendering the planned housing useless. It took around 30 years before Waldstadt acquired its own center. The Waldstadt Center has become a popular meeting place in the district and is now an integral part of it. Despite the district's somewhat difficult history, the residents appreciate their Waldstadt. One of the district's attractions is the Käuze Theater. Located on Königsberger Straße, the Käuze was founded by the former track and field athlete "Charly" Kaufmann.