The Treaty of Teschen (German: Frieden von Teschen, i.e., Peace of Teschen) was signed on May 13, 1779, in Cieszyn (Teschen), Austrian Silesia, between Austria and Prussia, which officially ended the War of the Bavarian Succession sparked by the death of Elector Maximilian III Joseph. Fearing the formation of a third German major power, Empress Maria Theresa of Austria at first had objected to the succession of Maximilian's Wittelsbach cousin, Count Palatine Charles IV Theodore - she nevertheless quickly gave in after the appearance of the Prussian forces at the war theatre. The peace came at the initiative of Russia and was guaranteed by both Russia and France.
The accord dictated that the Archduchy of Austria (Principality of Austria above the Enns) would receive the Bavarian lands east of the Inn river in compensation, a region then called "Innviertel", stretching from the Bishopric of Passau to the northern border of the Archbishopric of Salzburg. However, one of the requirements was that Austria would recognize the Prussian claims to the Franconian margraviates of Ansbach and Bayreuth, ruled in personal union by Margrave Christian Alexander from the House of Hohenzollern. Prussia finally purchased both margraviates in 1791. The Electorate of Saxony received a sum of six million guilders in return for its support. With the accession of Elector Charles Theodore, the electorates of Bavaria and the County Palatine of the Rhine (i.e. the territories in the Rhenish Palatinate and the Upper Palatinate) were under the united rule of the House of Wittelsbach. The Innviertel, except for a short time during the Napoleonic Wars, remained with Upper Austria up to today.
In 1785 Maria Theresa's son and successor Emperor Joseph II of Austria made another try at attaching the Bavarian lands to his Habsburg possessions, and even contracted with Elector Charles Theodore to swap it for the Austrian Netherlands. These plans were however once again frustrated by King Frederick II of Prussia, who raised the opposition by the Fürstenbund, an association of several Imperial princes. After the War of the Austrian Succession and the Seven Years' War, the Austrian House of Habsburg was no longer able to exercise its Imperial power against Prussian resistance.