The area of Verkhovazhye and the upper course of the Vaga were populated already in the 13th century.[8] Due to its location on one of the main waterways connecting central Russia and the White Sea (it was controlled first by Novgorodians, and after the fall of Novgorod was transferred to the Grand Duchy of Moscow), and the later construction of the surface road connecting Moscow and Arkhangelsk, by the 17th century Verkhovazhye was a major trading settlement. It was first mentioned in the 17th century, and in 1678 it became a posad, a semi-urban settlement.[9] In the 18th century industry was introduced, which included a distillery, an iron works, and a paper production plant. In the 18th century, Verkhovazhnsky Posad (currently Verkhovazhye) was one of the main trading towns in the Russian North, holding two annual fairs.[8] In 1810, a secondary school was opened.
In the course of the administrative reform carried out in 1708 by Peter the Great the area was included into Archangelgorod Governorate. Vaga volosts were explicitly mentioned as one of the towns included in the governorate. In 1780, the governorate was abolished and transformed into Vologda Viceroyalty. The latter was abolished in 1796, and the part of it which included Verkhovazhye was made Vologda Governorate. Since 1780, the upper Vaga lands were part of Velsky Uyezd with the administrative center in the town of Velsk. On July 15, 1929, the uyezds were abolished, and Velsky Uyezd was split into Velsky, Verkhovazhsky, and Ustyansky Districts. Verkhovazhye became the administrative center of Verkhovazhsky District. On July 30, 1931, Verkhovazhsky District was merged into Velsky District, and on January 25, 1935, it was reestablished.[10][11]
One of the principal highways in Russia, M8, which connects Moscow and Arkhangelsk, runs along the left bank of the Vaga, bypassing Verkhovazhye. There are also local roads, with the bus traffic originating from Verkhovazhye.
Законодательное Собрание Вологодской области. Закон №371-ОЗ от 4 июня 1999 г. «О вопросах административно-территориального устройства Вологодской области», в ред. Закона №2916-ОЗ от 7 декабря 2012 г. «О внесении изменений в Закон области "О вопросах административно-территориального устройства Вологодской области"». Вступил в силу со дня официального опубликования. Опубликован: "Красный Север", №124–125, 29 июля 1999 г. (Legislative Assembly of Vologda Oblast. Law #371-OZ of June 4, 1999 On the Matters of the Administrative-Territorial Structure of Vologda Oblast, as amended by the Law #2916-OZ of December 7, 2012 On Amending the Oblast Law "On the Matters of the Administrative-Territorial Structure of Vologda Oblast". Effective as of the day of the official publication.).
Правительство Вологодской области. Постановление №178 от 1 марта 2010 г. «Об утверждении реестра административно-территориальных единиц Вологодской области», в ред. Постановления №686 от 25 июня 2012 г. «О внесении изменений в некоторые Постановления Правительства области». Вступил в силу 20 марта 2010 г. Опубликован: "Красный Север", №29, 20 марта 2010 г. (Government of Vologda Oblast. Resolution #178 of March 1, 2010 On Adopting the Registry of the Administrative-Territorial Units of Vologda Oblast, as amended by the Resolution #686 of June 25, 2012 On Amending Various Resolutions of the Oblast Government. Effective as of March 20, 2010.).
Законодательное Собрание Вологодской области. Закон №1110-ОЗ от 6 декабря 2004 г. «Об установлении границ Верховажского муниципального района, границах и статусе муниципальных образований, входящих в его состав», в ред. Закона №3693-ОЗ от 25 июня 2015 г. «О преобразовании некоторых муниципальных образований Верховажского муниципального района и о внесении изменений в Закон области "Об установлении границ Верховажского муниципального района, границах и статусе муниципальных образований, входящих в его состав"». Вступил в силу через 10 дней со дня официального опубликования. Опубликован: "Красный Север", №242, 11 декабря 2004 г. (Legislative Assembly of Vologda Oblast. Law #1110-OZ of December 6, 2004 On Establishing the Borders of Verkhovazhsky Municipal District, on the Borders and Status of the Municipal Formations It Comprises, as amended by the Law #3693-OZ of June 25, 2015 On the Transformation of Several Municipal Formations in Verkhovazhsky Municipal District and on Amending the Law of Vologda Oblast "On Establishing the Borders of Verkhovazhsky Municipal District, on the Borders and Status of the Municipal Formations It Comprises". Effective as of after 10 days from the day of the official publication.).
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