It was established by the League of Nations, to stop countries from fighting, following the Central Lithuanian Offensive on Kaunas.

In the area was organised the propaganda operation targeted to Polish-speakers, as the League of Nations were preparing the plebiscite that would determine whether the population of Vilnius Region wanted to live in Lithuania and Poland.

[2] On the southernmost Lithuanian part of the zone operated the self-proclaimed Warwiszki Government, a resistance movement operating in Varviškė and neighboring villages, formed on 20 February 1920 as self-defense forces of the local Polish-speaking inhabitants from attacks of Lithuanian militias.

During its existence, Lithuanian militias backed by the army and police attempted several times to dissolve the local government.

[3] The fights in the neutral zone had affected vies of the local population on their national identity.