The town is situated on the Northern slope of Rila Mountain in Southwestern Bulgaria, just a two hours drive from the Capital of Sofia. The municipality contains the popular tourist destinations of the Seven Rila Lakes and the Skakavitza Reserve and Waterfall. As well as the administrative center of Sapareva Banya, 15 kilometers East of Doupnitza, the municipality includes the villages of Saparevo, Resilovo, Ovchartzi and the mountain resort of Panichishte. The municipality proudly shares one third of its territory with Rila National Park, which was established in 1992.
Sapareva Banya prides itself in its cool mountain water and its healing geothermal mineral waters. The mineral water is largely sulfuric with significant levels of iron, calcium and manganese. It is the hottest mineral water in the Balkans and produces the only active geyser here as well. The geyser and its surrounding park were developed in 1957 and have been tapped as a geothermal heating source for the municipal buildings and the greenhouses.