A municipality gas works was built in 1906, which supplied the houses and roads of Rhede with light.Since then the positive development of the municipality has persisted.
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In the local sector, numerous projects were completed, i.e.
the creation of the central water supply, the laying of sewerage systems and building of the sewage purification plant, road construction, the construction of a modern, outdoor swimming pool, the establishment of the school center and other school buildings, as well as the reconstruction of the Rhede city center.
Gradually a village settlement formed around the holy Gudula Parish Church, which has been called Rhede since 1300. Century, the ruling men of Rhede built a castle located east of the church at the place designated as "burg" (castle).
It was probably destroyed in 1324 by the bishop of Muenster and today know as the Gudulakloster/Klausenhof.
In 1564, Lubbert von Rhemen replaced the castle with a stately manor-house, whose northeast wing and tower exists still today.