Originally, rhinestones were rock crystals gathered from the river 'Rhine' hence the name, although some where also found in areas like the Alps.  The availability was greatly increased in the 18th century when the Alsatian jeweler Georg Friedrich Strass had the idea to imitate diamonds by coating the lower side of glass with metal powder.  Consequently, rhinestones are called Strass in many European languages.

Crystal rhinestones are produced mainly in Austria by Swarovski and in the Czeck Republic by Preciosa and a few other glassworks in northern Bohemia.  In the U.S., these are sometimes called Austrian Crystal.