The community stretches from the valley of the river Schwarzwasser up to the Spiegelwald (forest) at 728 m above sea level, thereby offering a good view over the Ore Mountain towns of Aue and Schwarzenberg.
The village, which is 1.5 kilometres northwest of the Gottesgaber Spitzberg mountain on the River Schwarzwasser between Gottesgab and Seifen is surrounded by high forest and was formerly a popular summer retreat and winter sports resort.
At the first village in Saxony that the Preßnitz flows through, Schmalzgrube, it is joined by the Schwarzwasser stream from Jöhstadt.