[1] Karahallı is at a distance of 62 km (39 mi) from the province center of Uşak lying to its north.

The ancient site of Pepuza, proclaimed as new Jerusalem in the traditions of Montanism, sometimes referred to as the lost sect of Christianity (mid-2nd century) is located within the boundaries of Karahallı district, and is an important visitor's attraction.

In Ottoman times, the township was an important center for textile products, made especially of wool woven following Turkish traditions.

Weaving activity is still pursued in an intensive manner with the presence of more than a thousand electric power looms across the district.

Cultivation of grapes intended for production of wine in the nearby center of Bekilli is also an important economic activity.