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The paper discusses border dispute between Croatia and Slovenia along the lower reaches of the Dragonja River, acute since the two countries gained independence in 1991. It is the most hotly contested border dispute point between the two countries except for the maritime border in Bay of Piran. The area with small villages of Mlini-Škrile, Bužini and Škodelin is known in the literature as the “area along the Dragonja River”, "the area of double records" or "the case of four villages". The paper begins by describing reasons for the southern border of the Municipality of Piran from geographic and economic aspects. It focuses on changes of borders from the legal aspect between and after World War Two. Situation on site is described for the last 60 years, based on a field research. The paper concludes by outlining the principle of international law “uti possidetis” and its possible implications for the area in question.