The village is located on the bank of the Patuca River in Tawahka Asagni Biosphere Reserve.
[2][3] The village could only be reached by boat until 2020, when an illicit road was cut through the Tawahka Asagni Reserve.
[2] At the time, the Tawahka people had been uprooted from their traditional centre, Yapuwas, by disease and forced displacement by the Tiburcio Carias government and some of them settled down in the new village.
[3] Around the time of the Honduran-Nicaraguan border conflict of 1958–1959, the government of Honduras founded a school in Krausirpi.
[11][12] In 1989, the National Agrarian Institute issued a guarantee of protected lands for the Tawahkas, extending some 7,500 hectares in the surroundings of Krausirpi.
[10] In the early 2000s, Krausirpi and the surrounding Moskitia region became epicenters for the illegal drug trade.
Fueled by profits of cocaine smuggling and money laundering, deforestation increased dramatically to accommodate cattle ranching.