Vodice was first mentioned in 1402 although it was founded already in the Roman times as Arausa. Its name derives from the word meaning water sources which supplied the whole area. As part of the Republic of Venice from 1412 to 1797, the defense walls from the times of the Turks with the Coric tower testify the past times. Other similar monuments are St. Cross' church on the former graveyard, built in 1421 and the parish church in the town centre built in 1746.
Several kilometers north of Vodice there are two fields, Rakitnica and Gradelji/Pišća: Rakitnica has an old fort named Gradina on the hill and down the hill it has three wells and a pond, recently a Roman terracotta masonry has been excavated there. This field is most known for the small church of Saint John, damages from the Patriotic 1991-95 war can be sen, the grassland near it is known for having 1 May celebrations every year. Gradelji/Pišća has old walls on the top of the hill, an old Roman Cistern, the small church of Saint Eliah, and a small ruined house from the 17/18th century.
With its pebble and sandy beaches, Vodice is a popular tourist destination in Croatia, with most of the population oriented towards tourism and providing accommodation for visitors in hotels, apartments and houses.
The well-known Hacienda Night Club is located in Vodice.
Vodice is birthplace of famous Croatian playwright Ivo Brešan.
On the nearby hill Okit during the Turkish invasions, refugees founded a settlement and on its top the chapel Lady of Mercy was built in 1660, which was ruined in WW2 and later reconstructed.