The Märchenland estate in Dotzheim, opposite Freudenberg Castle, is located between Ludwig-Erhard-Straße to the south and west, Frauensteiner Straße to the northwest and the Schelmengraben estate to the northeast. As early as 1935, architect Wilhelm Neuser planned the "Schiersteiner Heck" housing estate for the "Gemeinnützige Eigenheim-, Spar- und Wohnungsbau-Aktiengesellschaft" Frankfurt am Main (Gewobag) on the wet woodland sloping down to the south. However, due to the miserable soil conditions, only twelve of the approximately 110 planned houses were built in 1936. The settlers had to have a permanent job and their own funds.

Construction only continued after the Second World War. In 1946, people willing to build joined together to form the "Gemeinnützige Siedlerselbsthilfe e.V. Wiesbaden" and received a leasehold of 11.3 hectares of the site from the city. Architect Thomas Leineweber (1920-1987) took over the planning and construction management of the simple and uniformly designed settlement houses. Refugees and displaced persons in particular, but also people from Dotzheim, Frauenstein and Wiesbaden were among the first settlers. They were obliged to lend a hand, e.g. clearing land and digging building pits. Three houses were completed before 1948, another 100 or so by 1956/57. The association had already disbanded by 1955. It was not until the 1960s that König-Drosselbart-Weg and Brüder-Grimm-Straße were paved and gradually built on, partly by the "Bau- und Siedlungs-GmbH 'Eigener Herd' Wiesbaden".

Today, the Märchenland estate comprises a total of around 280 residential units on approx. 15 hectares of building land.