Zavidovići was developed by the Austrians during the 19th century Austro-Hungarian reign in Bosnia, mostly because of the "wood industry". After World War II, Krivaja, the company that was founded in 1884 and named after the Krivaja river, expanded. The company focused on furniture manufacturing, which it began to export to the United States under the name "Krivaja Beechbrook". Due to the Bosnian war in the 1990s, the former giant and the town are left with almost nothing.
Zavidovići's nickname is "Wood Town". Zavidovići is located in the basin of three rivers: Bosna, Krivaja and Gostović.