In the 1950s, a man made dam created a lake called Vlasinsko Jezero (Vlasina Lake) which is famous for its peat floating islands which were harvested by local farmers.
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The town stands at 480 m above sea level; it is surrounded by mountains to the north by Čemernik and to the south by Vardenik; the highest peak Strešer stands at 1875 meters high.
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NATO spokesman Jamie Shea commented that on April 27, 1999, during the NATO airstrikes against Yugoslavia, one NATO aircraft bombed a "small residential area" in Surdulica.
Vranjska Banja offers short tours to nearby cities like Vranje, Vladičin Han, Surdulica and the Vlasina Lake.