In 973, the lordship of Škofja Loka was granted by Emperor Otto II to the Bishops of Freising, and for the next one thousand years the history of the town was tied to that of the distant ecclesiastical principality. Castle and tower were built above the town for defense purposes and later became the residence of the bishop’s governor. Emperor Otto III granted the bishops the right to mint coinage and collect tolls. Škofja Loka was first mentioned as having market rights in 1248, and having town rights in 1274.
Škofja Loka was walled in the 14th century. In 1457, Duke Jan Vitovec entered and burned the town. The town was attacked by the Ottomans in 1476. The town also suffered from plague and fires during this time. Peasant revolts occurred in Škofja Loka in 1488, 1492, and 1515. Škofja Loka was destroyed by the 1511 earthquake, but soon rebuilt through the efforts of Bishop Phillip.
17th Century Fires
Much of the town was damaged by fires in 1660 and 1698. The defensive walls were mostly removed together with the town gates in 1789. In 1803 the Prince-Bishopric of Freising was mediatised during the German Mediatisation and the enclave of Škofja Loka was annexed to the Austrian duchy of Carniola. Škofja Loka was the first town in Carniola that got electricity.
Škofja Loka was occupied by Italian forces on 13 April 1941. The Italian authorities were replaced by German authorities on 17 April. The first citizens of the town were arrested by the Gestapo on 6 May 1941 and in the following weeks 26 families were deported to Serbia. Partisan units were active in the area throughout the war. The Partisans entered the town on 9 May 1945.
After the War
Loka Castle was used to hold prisoners of war and political prisoners. Municipality of Škofja Loka assumed ownership of Loka Castle in 1959. Škofja Loka has one of the best-preserved medieval urban centres in Europe, and the town was proclaimed a cultural monument in 1987.
Škofja Loka was mentioned in 973 as Lonca. The name literally means 'bishop's (wet) meadow', referring to its ownership by the Bishops of Freising.
