In 1699 Rača became part of Austria. Two years later, a 100-foot, 50-man cavalry and 100 border guards were set up in the town. The village was then populated by Serbs and in 1733 had 14 homes and 62 inhabitants. In 1784 the fortress of Rača was rebuilt because the old one was already destroyed. That year, the Austrian Emperor Joseph II personally visited Rača and for that occasion, a road was built from the village of Rača to the fort. At the beginning of the 19th century, Rača had 58 houses and 445 inhabitants. At the end of the same century, the fort was rebuilt and redeveloped into a 300-strong penitentiary. There were usually about 180 convicts and 20 guards in it. The unhealthy facility and the poor food made everyone feel sick Not long after, the object was bought by a merchant from Osijek who turned it into a brewery. The fort was later sold again and the brick removed. In 1911 the Šid-Rača railway was built. Between the two world wars, there was a municipality in Rača with a post office, telegraph and telephone, as well as a gendarmerie station and financial administrative control bureau.