Anders Bundgaard working on the fountain People strolling at the Gefion Fountain: Painting by Paul Gustav Fischer

The fountain was donated to the city of Copenhagen by the Carlsberg Foundation on the occasion of the brewery's 50-year anniversary. It was originally supposed to be located in the main town square outside city hall, but it was decided instead to build it near the Øresund in its current location near Kastellet ("The Citadel").

It was designed by Danish artist Anders Bundgaard, who sculpted the naturalistic figures 1897–99. The basins and decorations were completed in 1908. The fountain was first activated on July 14, 1908.

The fountain underwent extensive renovations starting in 1999. The fountain was out of commission for many years, and was re-inaugurated in September 2004.