Pag, a city on the island bearing the same name is a tourist, cultural and administrative seat. Pag was founded in the 15th century according to plans made by the Dalmatian Renaissance architect Juraj Dalmatinac. Today it represents one of few preserved medieval towns.
Apart from producing salt (the Pag salt works are as old as the town itself) the inhabitants also raise sheep (the famous Pag cheese and lamb), make wine (paska zutica), and are involved in agriculture and fishing. It is necessary to stress the uniqueness of Pag lace, the trademark of the island of Pag.