At the outset of Habsburg rule near the end of the 17th century, people of Orthodox faith were forbidden from residing in Petrovaradin, thus Serbs were largely unable to build homes there. Because of this, a new settlement was founded in 1694 on the left bank of the Danube. The initial name of this settlement was Serb City (Ratzen Stadt). Another name used for the settlement was PetrovaradinskiŠanac. In 1718, the inhabitants of the village of Almaš were resettled to PetrovaradinskiŠanac, where they founded AlmaškiKraj ("the Almaš quarter").
According to 1720 data, the population of RatzenStadt was composed of 112 Serbian,
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