At the end of 1980s, on territory of former Yugoslavia, national aspirations and tendencies for multiparty system were arisen. Immediately after first multiparty elections and victory of Croatian Democratic Union, leaders of Serbian minority in Croatia rebelled. Leader of Serbian Democratic Party Jovan Rašković proclaimed Serbian Autonomous Territory of Krajina (SAO Krajina) with Knin as capital and so called ''Log revolution'' started. Inspired with events in Knin and supported by Greater Serbian ideologists from Belgrade, Veljko Džakula with his associates initiated the rebellion of Serbian people in western Slavonia and Pakrac municipality itself. In the areas inhabited predominantly by Serbian nationality, referendum was held in order to decline obedience to the Government of the Republic of Croatia and to merge the western Slavonia with SAO Krajina. Aftermath of these events was attack on Lipik and Pakrac on August 19th 1991. Part of Požega municipality was under attacks until the end of 1991 when it was liberated by the Croatian Army, while Pakrac area remained occupied by Serbian rebels until the „Operation Flash“ in May 1995. War situation in Pakrac area lasted until Sarajevo Agreement when life began to normalize, with occasional provocations. During more peaceful periods, returns of refugees as well as restoration of destroyed infrastructure commenced. At that time, also the life in municipality of Požega was slowly normalized and main problems Požega faced with were refugees and forcedly displaced persons, corporate bankruptcies and unemployment.