 In the 1920s and 1930s, many Italians were settled in this area, which bordered both Austria and Yugoslavia.In 1939, the South Tyrol Option Agreement between Italy and Nazi Germany was also applied to ethnic Germans in the area; as a conqequence, most of the German-speaking population was resettled to neighboring Carinthia.New settlers from other parts of Italy gradually took their place, which significantly altered the ethnic composition of the valley.