The Boka Kotorska covers an area of 616 km2 and belongs to the coastal region, and it is a large bay on the Adriatic coast. In administrative terms, the Boka Kotorska is divided into three municipalities: Herceg Novi, Kotor and Tivat. By 1960s, agriculture was dominant in the Boka Kotorska, while tourism was in its infancy, as well as other industries. The population engaged in livestock and crop farming and growing maize, barley, rye and wheat. Olive growing was quite developed in the coastal zone. It used to be the most important industry in this area, generating significant income. After the 1960s, with further development of nonagricultural economy, Municipalities of Herceg Novi, Tivat and Kotor experienced population influx and sudden economic prosperity. After urbanization, rural areas became areas with low population density and agriculture as predominant activity referred mainly to households with elderly owners. Since 1970s, shipping industry, tourism, ship building and chemical industry were pillars of the Boka’s economic development, while agriculture was neglected, although natural conditions for its development existed.