The territory of the municipality covers parts of the Danube hilly plain and the Fore Balkan. The relief is mostly hilly, in the northern parts flat and in the southern are the higher ridges of Chiprovtsi-Berkovska Mountain and Koznitsa. A significant factor for the development of the region is water transport. Port Lom is the second largest river port in Bulgaria after Ruse. The Danube River is connected by the so-called European Channel with the Main and Rhine rivers and connects the North Sea with the Black Sea. Some of the larger rivers passing through the area are Ogosta, Lom and Tsibritsa. There are mineral springs near Varshets and the villages of Zamfirovo, Spanchevtsi and Burziya.

In the plain part of the region plant growing is well-developed  and there are favorable conditions for automatic cultivation of the land and artificial irrigation. One of the biggest dams in Bulgaria - Ogosta - is located near Montana. Mining is also well developed. Carpeting in the region evolved as a 17th-century craft, and Chiprovtsi carpets are very famous for their unique blend of colors and design. Typical of these are the floral ornaments, the main colors being red, red and dark blue.

The area offers favorable conditions for the development of cultural, spa, ecotourism and water sports. Traces of prehistoric settlements, medieval fortresses and churches are found in the region.