BABUŠNICA municipality is a part of Pirot county. It is surrounded by Pirot and Bela Palanka municipalities in the North, Bulgarian border in the East, Vlasotina and Crna Trava municipalities in the South and Gadzin han municipality in the West. It is situated on the M9 highway from Leskovac to Pirot, connecting the E75 highway (towards the South of Europe) and E 80 highway (towards the East of Europe). It is located in the river Lužnica valley, which forms the Lužnica gorge, 520 meters above the sea level. This place on the Suva Planina mountain slopes is known for its Mills located on Lužnica river, and for Komarica waterfalls. However, the most significant tourist centre in Babusnica municipality is Zvonacka Spa, 28 kilometres east of Babusnica. This spa is positioned at 680 metres above the sea level, on a very attractive mountain location, and it is known for its healing effects to human nervous system. Currently, a small artificial lake on the Raljinska river, the tributary of the Murgovnica river, is under construction. The planned length of the lake is approximately 200 metres. The dam is positioned immediately above the range of waterfalls known as Skokovi.