The built-up area is situated in the valley of the brook Jílovský potok, which is part of the Most Basin lowland.

The valley separates the Central Bohemian Uplands and the eastern tip of the Ore Mountains.

There started an important production in manufacture in the end of feudalism (buttons, textile, primitive machines).

[3] The Libouchec Castle, originally named Schönstein, was established by Günter of Bünau in the 16th century.

Due to the Thirty Years' War and fires, the castle gradually fell into disrepair and it has been in the emergency conditions.