Although there are no artifacts or records dating back to the Stone Age, it is believed that the first settlers in Bali migrated from China around 2,500 BC, and by the Bronze era, around 300 BC, quite an evolved culture existed in Bali. The complex system of irrigation and rice production, still in use today, was established around this time.

History is vague for the first few centuries. A number of Hindu artifacts were been found dating back to the 1st century (AD), which suggests that the main religion, around 500 AD, was predominantly Buddhist.

It wasn't until the 11th century that Bali received the first strong influx of Hindu and Javanese cultures. With the death of his father around AD 1,011, Airlanggha, a Balinese prince, moved to east Java and set about creating unity. Having succeeded, he then appointed his brother, Anak Wungsu, as ruler of Bali. During the ensuing period there was a reciprocation of political and artistic ideas, and the old Javanese language, Kawi, became the language used by the aristocracy.

With the death of Airlanggha, in the middle of the 11th century, Bali enjoyed a period of autonomy. This proved to be short lived as in 1284, the East Javanese king Kertanegara, conquered Bali and ruled over it from Java. In 1292, Kertanegara was murdered and Bali took the opportunity to liberate itself once again. However, in 1343, Bali was brought back under Javanese control by its defeat at the hands of Gajah Mada , a general in the Majapahit, the last of the great Hindu-Javanese empires.

With the arrival of Islam in neighboring Java during the 15th century, a large number of courtiers, artists, musicians and craftsmen fled to Bali. As such, the Balinese have always been creative.

With the spread of Islam throughout Sumatra and Java during the 16th century, the Majapahit empire began to collapse and a large exodus of the aristocracy, priest, artists, and artisans fled to Bali. For a while Bali flourished and the following centuries were considered the Golden Age of Bali's cultural history. The principality of Gelgel, near Klungkung, became a major canter for the Arts, and Bali became the major power of the region, taking control of the neighboring island of Lombok and parts of East Java.

THE EUROPEAN INFLUENCE
The first Dutch seamen set foot on Bali in 1597, yet it wasn't until the 1800's that the Dutch showed an interest in colonizing the island. In 1864, having had large areas of Indonesia under their control since 1700's, the Dutch government sent the troops to northern Bali. In 1894, the Dutch sided with the Sasak people of Lombok to defeat their Balinese rulers. By 1911, all the Balinese principalities had been defeated in battle, leaving the whole island under Dutch control. After World War I, Indonesian Nationalist sentiment was rising and in 1928, Bahasa Indonesia was declared the official national language.

During World War II, the Dutch were expelled by the Japanese, who occupied Indonesia from 1942 to 1945. After the Japanese defeat, the Dutch tried to regain control of their former colony, but on August 17, 1945, Indonesia declared it's independence by (it's first) president, Sukarno. After four years of fighting and strong criticism by the international community, the Dutch government finally departed, and in 1949, Indonesia was recognized as an independent nation.