The Republic of Srpska is located in the western part of the Balkan Peninsula, and well connected by transport network with the adjacent countries (Serbia, Croatia and Montenegro).
Quality agricultural and forest potentials are one of the main features of the Republic of Srpska. Agricultural land covers the total area of 1,299,000 ha (51% of the RS area), or 1 ha per capita, which is above both the world average (0.24 ha per capita) and European average (0.40 ha per capita). The forests cover 0.67 ha per capita.

Waters represent another richness of the Republic of Srpska (water potential use is of 30%), and watercourses meet over 73% of parameters prescribed for first class water.

Due to its natural richness, the Republic of Srpska has great tourism potential. In particular, there are the following locations: mountains – Jahorina, Kozara, Manjaca, Maglic, Romanija, Borja; rivers – Tara (rafting), Drina (lakes, fishing), Pliva (lakes), Vrbas (kayak, rafting), Una (kayak, rafting, fishing, falls), Sava (water sports, nautical tourism), Ribnik (fishing); lakes – Perucac, Zvornicko Lake, Plivska Lakes, Balkana (artificial); spas – Laktasi, Slatina, Srpske Toplice, Mljecanica, Vrucica, Kulasi, Dvorovi, Ljesljani, Vilina Vlas and Guber; natural reserves – primeval forest Perucica, primeval forest reserve Janj near Sipovo, Bardaca near Srbac (natural bird reserve with 11 lakes); excursion sites – Zelenkovac and Balkana near Mrkonjic Grad, Eco-Center Ljekarice near Prijedor, Ethnic Village Stanisic near Bijeljina, Tjentiste on the Sutjeska River; national parks – Sutjeska and Kozara.

Banja Luka is the administrative, economic and cultural center of the Republic of Srpska, the seat of Government of the Republic of Srpska and National Assembly of the Republic of Srpska. It is located in the northwestern part of the Republic of Srpska. Its distance from Sarajevo is 240 km, from Zagreb 190 km, and from Belgrade 320 km. It is linked with these cities by quality roads, railroads and airways. The territory of the city covers the area of 1,232 km², and has about 300,000 inhabitants.

Other big towns in the Republic of Srpska include: Bijeljina, Prijedor, Doboj, Gradiska, Zvornik, Prnjavor, Teslic, Laktasi, Trebinje, etc.
The town of Brcko is located in Brcko District, which is under joint administration of the Republic of Srpska and Federation of BiH.