Pag (Italian: Pago, German: Baag) is the largest town on the island of Pag, with a population of 3,121 (2005) The mediaeval Pag emerged near the salterns where the abandoned Old Town used to be, 3 km south of the present location. According to historical documents, the name Pag was mentioned for the first time in the 10th century. In 976, the Croatian king Stjepan Držislav took Pag from the Byzantine authority and appointed a Croatian district Prefect as the administrator of the town.
In 1244 Hungarian-Croatian king Béla IV granted Pag the status of a free royal town. After the rebellion against Zadar, Pag obtained partial autonomy, and Ludovic I acknowledged its full autonomy in 1376 as to all other Dalmatian towns. In the battles against Zadar which took place in 1394 Pag suffered a heavy defeat and devastation, and the inhabitants moved to a new location, where the present Pag was founded.