During the Ottoman Period, the district was moved to Yüksekkum, where Hurşit Pasha was brought to Muğla Governorship (1884). It was attacked by the enemy during the War of Independence, and at the end of 1919, Kuva-i Milliye Organization was established under the leadership of Tahirağa, Mehmet Zeki Osman Ağa and Tevfik Bey and was included in the defense of the country. As to where the name Köyceğiz comes from: According to legends, Köyceğiz was established on a plain located on the lake’s area. At an unknown time, the plain flooded. When those who came to the course of the disaster saw a few houses and people in the eastern part of the lake: “The whole city has sunk, there is only one Köyceğiz on the shore.” they said. It is believed that there is still a sunken city under the lake today.

Köyceğiz: Köyceğiz District is a quiet touristic town at the junction of the Mediterranean and Aegean Regions, at the 60th km of the Muğla-Fethiye Highway, surrounded by rich natural beauties and citrus gardens. The district is established in the north of Köyceğiz Lake, which is named after it, and it has an area of ​​1.758 km².

85% of the population of the district lives in the village and earns its living from agriculture, animal husbandry, forestry and tourism. The district’s biggest source of income is agriculture. Polycultural agriculture is carried out in the district and the climate and geographical structure are suitable for the cultivation of many products.