Industrijska revolucija in tuj kapital sta pospešila razvoj mesta: v neposredni bližini term so konec 19. stoletja začeli graditi tovarne za predelavo rib.
Od konca 19. stoletja naprej začne Izola dokončno izgubljati svojo srednjeveško podobo in otoški nadih. Nadvse pomembna pridobitev je bila železniška proga od Trsta skozi Izolo do Poreča, dograjena leta 1902. Kljub železniški progi in kasnejšemu avtobusu pa je promet večinoma še vedno potekal po morju z barkami, saj je bila pot po morju cenejša in hitrejša. (Simič, 1997)
Vir: 1. SIMIČ, S. (1997). Izola = Isola. Ljubljana : IKI – Institut za komunikacije in informatiko
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