Vils is situated at the Bavarian border. Even though Vils is the only town with a city charter (1327) within the district of Reutte, agriculture was the main source of income till the 20th century. Today Vils, which once had a moat and a bailey, only still shows an urban character in the Stadtgasse Lane with its compact buildings. Vils economical boom and its development into an industrial town was directly connected with the foundation of the cement factory Schretter in 1899. Schretter & Cie, which is the most important employer in town, is the only remaining cement factory in the Tyrol. The factory gets its row materials from limestone quarries south of Vils.