While interest in the area as a potentially useful port grew from the mid 19th Century, it was only with the opening of the railway to Stockholm in 1901 that Nynäshamn started to develop.
During the early 20th Century, Nynäshamn also became well known as a spa town, though most such facilities were closed down before the end of World War I. Main industries arrived through Telegrafverkets verkstäder (the factories of the Government owned telephone company ) in 1916 and an oil refinery built in 1928-29 by Axel Ax:son Johnson & Co. The latter still remains though under different ownership and under the name Nynas.

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