The village of Supetarska Draga is situated at the northwest end of the island, along a deep cove. The name of the village derived from the name of monastery St Peter in Draga (Sanctus Petrus in Valle). In 1059, the prior of Rab Maius and bishop Drago founded the Benedictine abbey Sv. Petar u Drazi in the middle of a fertile and spacious valley. King Petar Kresimir IV acknowledged the donations of the people of Rab to this monastery in 1070. Only the church with a simple marble Romanesque portla has been preserved. The monastery premises are now in ruins.
The village is divided in two: Supetarska Draga Gornja and Supetarska Draga Donja. One can still see the ruins of an old water-mill that was the only one on the island. It was in use until thirty years ago. The spring water which kept the water-mill running is still used today for the water supply of the whole island. The western part of Supetarska Draga, with its sandy coves and three islets (Maman, Sridnjak e Sailovac), is one of the most beautiful and picturesque parts of the island, especially its peninsula of Gonar.