During the period of Austro-Hungarian rule (1878-1918), Mostar's city council cooperated with the Austro-Hungarians to implement sweeping reforms in city planning: broad avenues and an urban grid were imposed on the western bank of the Neretva, and significant investments were made in infrastructure, communications and housing.
Between 1948 and 1974 the industrial base was expanded with construction of a metal-working factory, cotton textile mills, and an aluminum plant.