The Bauhaus school was founded by Walter Gropius in Weimar. In spite of its name, and the fact that its founder was an architect, the Bauhaus did not have an architecture department during the first years of its existence. The Bauhaus style became one of the most influential currents in Modernist architecture and modern design. The Bauhaus had a profound influence upon subsequent developments in art, architecture, graphic design, interior design, industrial design, and typography.

The school existed in three German cities (Weimar from 1919 to 1925, Dessau from 1925 to 1932 and Berlin from 1932 to 1933), under three different architect-directors: Walter Gropius from 1919 to 1927, Hannes Meyer from 1927 to 1930 and Ludwig Mies van der Rohe from 1930 to 1933, when the school was closed by the Nazi regime.

The changes of venue and leadership resulted in a constant shifting of focus, technique, instructors, and politics. When the school moved from Weimar to Dessau, for instance, although it had been an important revenue source, the pottery shop was discontinued. When Mies van der Rohe took over the school in 1930, he transformed it into a private school, and would not allow any supporters of Hannes Meyer to attend it.

Bauhaus and German modernism

However, the most important influence on Bauhaus was modernism, a cultural movement whose origins lay as far back as the 1880s, and which had already made its presence felt in Germany before the World War, despite the prevailing conservatism. The design innovations commonly associated with Gropius and the Bauhaus - the radically simplified forms, the rationality and functionality, and the idea that mass-production was reconcilable with the individual artistic spirit - were already partly developed in Germany before the Bauhaus was founded. The German national designers' organization Deutscher Werkbund was formed in 1907 by Hermann Muthesius to harness the new potentials of mass production, with a mind towards preserving Germany's economic competitiveness with England. In its first seven years, the Werkbund came to be regarded as the authoritative body on questions of design in Germany, and was copied in other countries. Many fundamental questions of craftsmanship vs. mass production, the relationship of usefulness and beauty, the practical purpose of formal beauty in a commonplace object, and whether or not a single proper form could exist, were argued out among its 1870 members (by 1914).

The entire movement of German architectural modernism was known as Neues Bauen. Beginning in June 1907, Peter Behrens' pioneering industrial design work for the German electrical company AEG successfully integrated art and mass production on a large scale. He designed consumer products, standardized parts, created clean-lined designs for the company's graphics, developed a consistent corporate identity, built the modernist landmark AEG Turbine Factory, and made full use of newly developed materials such as poured concrete and exposed steel. Behrens was a founding member of the Werkbund, and both Walter Gropius and Adolf Meier worked for him in this period.