[1] It is located between the municipalities of Mrkonjić Grad to the west, Jezero to the north, Jajce and Donji Vakuf to the east, and Kupres (Republike Srpske) and Glamoč to the south.

In the narrower geographical sense, Šipovo is located in southeastern part of Republika Srpska, with the total area of 510 km2 (197 sq mi), and with a population of 11,000.

In the region of Šipovo, there are the following types of soil: podzoli, smeđa, and to some extent muck (černozem), and flotsam in the valleys of the rivers Pliva and Janj.

In the global climatic sense, Šipovo lies in the moderate continental zone, with certain differences due to variations in altitude, as well as topographic and vegetational elements.

Winds are very often in the southern part of the area (Janjska visoravan) due to the intermixing of the Mediterranean and continental air masses over Janj.

Owing to all these diversities, the inhabitants of the area are given the possibility to engage in various fields of agriculture (farming, fruit growing, cattle breeding, fishing, and apiculture), tourism and so on.

Una-Sana  Central Bosnia Posavina  Herzegovina-Neretva Tuzla  West Herzegovina Zenica-Doboj  Sarajevo Bosnian Podrinje Canton 10