The City of Vukovar has, due to Serbian aggression during many months of attacks and siege and throughout the six-year period of occupation, suffered greatly regarding both human losses and material damages in all spheres of its citizens’ economic and social lives. The numerous and complex effects of the war represent an extremely negative determinant of postwar (peaceful) reconstruction and revitalisation of the demographic, social and economic picture of Vukovar. Thousands of people killed, some twenty thousand displaced persons and ten billion kuna worth of war damages in housing units, economic, communal and transport infrastructure – are only rough numerical indicators of the size and structure of the consequences caused by Serbian military aggression against Vukovar. Despite the aftermath of war, all the casualties and destruction, the City of Vukovar has managed to retain most of its transport and geographic features based on which, if given the right strategy of social, economic and spatial development, the city and its surroundings could prosper.