In November 1897, two German missionaries were murdered by a mob in Shantung Province, China.  In response, German naval forces occupied the port city of Tsingtau, and the German government used the occupation to press the Chinese government for a long-term lease of the port and the surrounding area. In March 1898, Germany and China entered into a 99-year lease under which Germany would control both sides of the entrance to Kiautschou Bay, as well as the islands within. Around this leased territory would be a small neutral zone which would, in effect, also be under German control.

In September 1900, German troops were sent to the town of Kiautschou to protect workers on the Shantung Railway, which ran from Tsingtau, Kiautschou, through the neutral zone to Tsinan, China.  A Feldpost station was opened on 26 September 1900, but was quickly promoted to a full post office on 27 October 1900.

The Kiautschou post office closed on 31 December 1905.