The municipality was formed after the formation of the two entities of Federation of Bosnia and Herzegovina and Republika Srpska which together comprise the sovereign state of Bosnia and Herzegovina. The creation of the two entities split the original municipality of Kupres in two, one municipality in Federation of Bosnia and Herzegovina and the other in Republika Srpska. During the war the municipality name was changed to Srpski Kupres, but since then the Government of Bosnia and Herzegovina has forbidden the use of that name in order to avoid nationalistic sentiment
