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Niklasdorf is situated at an altitude of 521 m on the river Mur. The original name, Michilindorf, was first mentioned in a papal document of 1148. This name is derived from the Old German word mihhill, which means great. From 1790 on, the name of the municipality was Micheldorf (after a chapel of the Archangel Michael). Only since the 1880s, the modern name Niklasdorf (derived from the patron saint of the parish church) is in use.