City of Prijedor (Municipality by the end of 2012.) Is located in the northwestern part of Bosnia and Herzegovina, the Republic of Serbian entity. Located on the banks of the river Sana and Gomjenica and on the slopes of Mount Kozara, at an altitude of 135 m. The area is 834 km ². Due to its favorable geo-strategic position and existing transport infrastructure, it is well connected to neighboring cities, municipalities and the wider environment. The city is removed from Banja Luka 50 km, from Kozarska Dubica, Novi Grad and Sanski Most by 32 kilometers. Through Prijedor passes the railroad Sarajevo - Zagreb. The spatial distribution of the population is in accordance with natural conditions and resources. The entire northern part, ie. a belt that occupies the mountain Kozara, is practically uninhabited and is mainly covered by forests. According to estimates, today there are around 110.000 people settled in 71 settlements, of which about half of the rural population. Population density is about 132 inhabitants/km ² The average household size is about 3 members. In the area of Prijedor, there is more of a mixed-type settlements, that play a role of zonal centers and characteristics partly rural, partly urban areas. Administratively, it is divided into 49 local communities. It is recognizable by its large natural resources (primarily finding of iron ore and nonmetallic), as well as tourism potential. City of Prijedor has a huge potential for economic development in several sectors.