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It is not clear how Prijedor got its name, but there are two theories.

The first mention of the town, which refers to it as “Palanka Praedor” in a Latin written report of an Austrian field marshal about burnt fortified settlements, occurs between 16.

The term “Palanka” indicates a wooden fortification built on an artificially created island on the river Sana.

The city lies on the alluvial terrain created by the Sana river and its tributaries on the south-western hillsides of the Kozara mountain.

Prijedor's history as a fortified centre of population can be traced back to the end of the 17th century, but the history of the colonization and culture of the surrounding area is much older, predating the emergence of the town.

The next year the Austrian authorities opened a large sawmill at the foot of the mountain Kozara, which is the first industrial object in the history of Prijedor.