Milići Municipality covers an area of 285 km2 of hilly terrain, altitude from 250 to 1500 m. Milići is located at the confluence of two rivers, Zeleni and Studeni Jadar. Moderate climate, numerous water courses, plenty of greenery and economic resources, hardworking and inventive people, have enabled the municipality to become a moderately developed municipality in the Republic of Srpska. Location on the main road Sarajevo – Belgrade is a special reference for transit activities. It belongs to the middle populated municipality with a population of 12300 according to the last census results.

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The population of the municipality is employed in mining, forestry, wood processing and industry, utility, commercial, educational, health, cultural and public institutions in the municipality.
The existence of bauxite ore deposits, whose exploitation is particularly influenced by the rapid development of this municipality as a whole. Significant reserves and exploitation of non-metallic raw materials, as well as the exploitation of forest resources determined the directions of economic development of the municipality. The municipality of Milići except bauxite ore is rich in forests, especially broadleaved, which has resulted in the opening of plants for primary wood processing. Agricultural land in the municipality is typical for development of livestock and horticulture, which in this region has a significant tradition.