Pec pod Sněžkou is situated in the North-east Bohemia near the border with Poland under the highest Bohemian mountain the Sněžka (1602m). At the end of the 16th century it was a part of Velká Úpa. It was established to facilitate extensive timber felling to supply the silver mines at Kutná Hora. Wood cutters were summoned from Styria, Carinthia and Tyrol and on the resulting clearing they set up meadowland, built their dwelling called "boudy" (chalets) and kept cattle and goats. The development of tourism in the second half of last century brought a new source of earning to the cottagers. At the beginning they offered overnight shelter in the hay and sold the tourist milk, butter and cheese. Later they adapted their cottages to let room.