Polace was settled in 3rd century by the Romans, in a small bay, hidden from the wind. Presence of fresh water in the vicinity was crucial for development of Polace, which was built from a mansion into an admirable castle, during the Roman authority, whose remains still stand proud in the village. Polace's population grew rapidly until the 11th century, when the Benedictine owners banned further settling of the village. It was only back in the 19th century, when the population started growing again. People of Polace are traditionally engaged in fishing, wine making and, since recently, tourism.