Jajce is a city and municipality located in the central part of Bosnia and Herzegovina
, in the Bosanska Krajina region. It is part of the Central Bosnia Canton of the Federation of Bosnia and Herzegovina entity. It is on the crossroads between Banja Luka, Mrkonjić Grad and Donji Vakuf, on the confluence of the rivers Pliva and Vrbas.
The economy of the Jajce municipality is nowadays weak. UNESCO has started to renovate the historical parts of the city together with Kulturarv utan gränser, a Swedish organisation (Cultural Heritage without Borders). The main project of the company was to renovate the old traditional houses which symbolised the panoramic view of the city and the waterfall. As of 2006, most of the houses were rebuilt.
The town is also famous for its beautiful waterfall where the Pliva River meets the river Vrbas. It was thirty meters high, but during the Bosnian war, the area was flooded and the waterfall is now 20 meters high. The flooding may have been due to an earthquake and/or attacks on the hydroelectric power plant further up the river.