In 1286, Pons de Gourdon, lord of Labastide Fortanière, granted the Pech de Montfaucon to the English at the request of the king of France. There they established an administrative city with an orthogonal layout. During the Hundred Years' War, the city was occupied and was not taken over by the French until 1440. Thanks to a charter signed by the king, the village subsequently enjoyed years of prosperity and enjoyed privileges acquired during the English occupation, such as independence from the local lords and exemption from taxes. The inhabitants enjoyed freedom of establishment, commerce and justice. Although the revolution removed these advantages, this had little effect and the village became the capital of the canton.
The installation of a minor seminary by the bishop of Cahors strengthened this prosperity. A large number of houses were converted into shops, hotels and cafes. The presbytery was enlarged and a convent of nuns was established at the bottom of the village.
The separation of church and state ended this period of prosperity. The seminary building remained unoccupied until it was taken over by the PTT (Post, Telegraph and Telephone) who transformed it into a sanatorium. Today, it is a recognized center of functional rehabilitation. Under Napoleon III, Labastide Murat was designated as the new capital of the canton, Montfaucon fell asleep. Paradoxically, this has preserved its architecture, and the village, now renovated, is a superb example of a bastide.