The agreement provided for the improvement of water and electrical power supply, the return of refugees to their homes and the opening of transport routes spanning Sector West and connecting Croatian Army-controlled areas near towns of Nova Gradiška and Novska.

The Daruvar Agreement, mediated by the head of the United Nations (UN) Civil Affairs in Sector West Gerard Fischer, was negotiated in secrecy.

In November, Croatia, Serbia and the Yugoslav People's Army (Jugoslovenska Narodna Armija – JNA) agreed upon the Vance plan, designed to halt combat operations in the Croatian War of Independence and allow the negotiation of a political settlement.

[7] The UNPROFOR was tasked with demilitarisation of the UNPAs, ceasefire maintenance, monitoring of local police and creating conditions for return of internally displaced persons and refugees.

[8] Those comprised more than 300,000 Croats who were exiled from the RSK-controlled territory,[9] and 20,000 Serbs who fled the areas of western Slavonia captured by the Croatian Army (Hrvatska vojska – HV) in Operations Swath-10, Papuk-91 and Hurricane-91 in late 1991.

[16] The agreement, signed in Daruvar on 18 February, encompassed the reconstruction of water and electrical power supply networks, the reopening of the Zagreb–Belgrade motorway section in Sector West for non-commercial traffic, the facilitation of the Novska–Nova Gradiška railway, the repair of telecommunication lines, the establishment of a joint commission tasked with normalisation of living conditions in Sector West, the return of all refugees to their homes, the access to property owned by civilians across the ceasefire line, and further meetings with local authorities to discuss further cooperation.

[19] Signatories on behalf of the Croatian local authorities were Zlatko Kos, Zdravko Sokić, Ivan Volf, Vladimir Delač and Želimir Malnar.

[18] According to the International Criminal Tribunal for the former Yugoslavia testimony given by Džakula at the trial of Milan Martić, Ivan Milas was present at the signing of the agreement as a representative of the Government of Croatia, accompanied by Joško Morić, Croatian Deputy Interior Minister.

[20] The central RSK authorities in Knin learned of the agreement through a report filed by the 18th Corps of the Army of the Republic of Serb Krajina on 26 February, eight days after it was signed.

[23] District council of the RSK-controlled western Slavonia condemned the agreement because it was enacted only in Croatian, and failed to note the existence of the RSK or its administrative divisions.

However, a series of armed incidents in late April 1995 led to a Croatian military intervention and the capture of the portion of Sector West previously controlled by the RSK in Operation Flash in early May.