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Alu was first mentioned in 1241 as Alafæ village in the Danish Census Book.
Alu Manor was first mentioned in 1409 as Alven (later known as Allo). The present main building, designed by Paul Friedrich Wilhelm Alisch, is one of the best examples of Neo-Gothic style in Estonia. The building is surrounded by an 11 ha park with seven ponds. After the dispossession from 1923 to 1955 a local grammar school operated in the main building. Since 1999 it houses a training centre for the Estonian Defence League.