It takes place at a former military airport called Müritz Airpark in Lärz, Mecklenburg-Vorpommern, in northeastern Germany.

The annual festival was started by the Kulturkosmos organisation in 1997 and is described by the organizers as a place to practice "Holiday Communism" (Ferienkommunismus).

People go to the Fusion to experience a different way of socializing and living, where experiencing one another freely, sharing love for music and art connects different scenes and minds.

The site was first acquired by the German Empire in 1916 as an aviation research and training ground, opening the facility for use by the Luftstreitkräfte in August 1918.

After the establishment of the Luftwaffe in 1935, the field served as the Erprobungsstelle Rechlin central military aircraft test facility of the Third Reich through early 1945, and it was captured by the Soviet Red Army on 2 May 1945, for use by the VVS.