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Province Gacka where the city Otocac is, is located within the high-mountain frame, which consists of Velebit and Mala Kapela, according to archeological finds, the material remains of the individual cultures, from the older stone age, Roman times until today was always inhabited.

Otocac as the main centre of Gacka is the oldest settlement with the Croatian population. It was first mentioned on the Bascanska ploca from the end of 11th century (1100th years), the cornerstone monument of Croatian literacy and culture. Otocac, never subdued the city, was built on the island in the middle of the river. Around the town it was a strong wall, a foundation had a form of irregular heptagon, with six towers on the outer wall and a tall square tower inside the walls. This has created the core of urbanity of Otocac and until the 18th century remained without significant changes.

In the area of the city has traces of a man living in older times. The Gacka river divides the city into two parts - Upper, recognizable by the church of Holy Trinity and the lower city, which can be recognized by the chapel of the Blessed Virgin Mary.

At the end of 19th century was built a complex of brewery by the name of Fortica below the fort, and so begins the industrialization of Otocac. The urban development of Otocac, during the first half of 20-century is manifested mainly by further filling historically defined urban matrix, and city construction of individual buildings along the traditional communications, developed co-operatives, forestry, health, chemical, wood and textile industry, trade and catering.