The oldest finds attesting to human presence in the Villach area date back to the late Neolithic. Roman-era finds, dating back to the 1st century BC, confirm the existence of a road exchange station called Santicum. The name Villach derives from another Roman tax station called Bilachinium or Bilachium. Around 600, Slavic populations settled in the area, forming Carantania, which in 740 became a possession of the Dukes of Bavaria and later the Holy Roman Empire. The city and its bridge over the Drava are mentioned, for the first time, in a document from 878. In 979, the city was assigned as a fief by Emperor Otto II to Bishop Albuino of Bressanone. From 1007 until 1759, Villach was a possession of the diocese of Bamberg; in 1060, it became a market seat, and in 1240, it was elevated to city status. The city was rebuilt several times due to fires and two devastating earthquakes. Around the first half of the 16th century, Villach became the Carinthian center of the Protestant Reformation. Protestant inhabitants were forced to emigrate in the following century, accelerating the city’s economic decline. In 1759, Villach, along with other possessions of the diocese of Bamberg in Carinthia, was ceded to Austria. With the reforms introduced by Empress Maria Theresa, Villach became, like Klagenfurt and Völkermarkt, the capital of a district. During the Napoleonic era, Villach and its district were incorporated into the Illyrian Provinces.