After World War I according to the Treaty of Saint-Germain-en-Laye, the border of the Kingdom of Italy with the Republic of Austria was shifted up the Canal Valley north to the town of Tarvisio. The two settlements of Pontebba and Pontafel finally merged on 15 August 1924. During World War II, the rail line through the town was the target of heavy aerial bombardment by the United States Army Air Forces because it was used by Germany to transport supplies to Italy. However, the aerial bombardment did not succeed in damaging the rail line, which is still in use today.