This paper discusses contemporary social and political processes which characterize the town of Zaječar in eastern Serbia: 1. Autocracy, showbiz-like public policy and crime-linked local authorities, 2. a very bad economic situation and a high unemployment rate, 3. Depopulation, 4. The increase in the number of tourist visits, 5 Ethno-cultural and identity diversity and “the Vlach issue.” These processes are closely related to difficult transitional times in Serbia, but also to local and regional particularities which are largely determined by provincial and border position of this town. The present conditions in Zaječar are considered in a context determined by the terms: small town, transition, provinces, bordering area, cultural heritage and multi-ethnicity. [Projekat Ministarstva nauke Republike Srbije, br. 179013: Održivost identiteta Srba i nacionalnih manjina u pograničnim opštinama istočne i jugoistočne Srbije]