forcibly removed from Senj and disbanded into the hinterland, most notably in the �umberak hills near Karlovac.
Meanwhile, the fort was becoming too crowded for the city's expanding population and the Military Frontier government could not allow for its further growth. On December 6, 1693 the city received some limited self-government. Queen Maria Theresa, after long insistence from the Croatian Parliament, restored the towns of Karlovac and Rijeka to the Croatian crownland on August 9, 1776. Maria Theresa was also responsible for the founding of Gymnasium Karlovac, and later King Joseph II reaffirmed it as a free town with an official charter in 1781. This allowed the citizens to expand the city and exploit the potential of being at the crossroads of paths from the Pannonian plains to the Adriatic coast. The town blossomed in the 18th and 19th centuries with the development of roads to the seaside and waterways along the Kupa River.
The town's fortunes declined in the 20th century, though it is currently recovering.
Karlovac suffered much damage during the Croatian War of Independence (1991�1995). The southern sections of the city were close to the front lines between the Republic of Croatia and the rebel Serbs, and the neighborhoods of Turanj, Kamensko, as well as parts of Meku�je, Mala �var?a and Logori�te were devastated by shelling. The city centre, the city hall, and numerous other buildings were also damaged.
Until the early 2000s, Karlovac's main industry was its beer "Karlova?ko", produced by Karlova?ka pivovara. In recent years, the rapidly growing firearms manufacturer HS Produkt has become the city's largest private employer. HS Produkt is best known as the designer and manufacturer of the HS2000 pistol, sold in the United States as the Springfield Armory XD
