The town of Banya lies at a distance of 12 km south of Karlovo. It has a population of 3 900 inhabitants. The town is situated at the southern part of the Karlovo valley. The region is specialized in the growing of oil-bearing rose, peanuts and vegetables. The town has got a winery. Banya is a spa centre with 10 thermal mineral springs whose water is suitable for treating diseases of the nervous system, gynaecological diseases, rheumatism, high and low blood pressure. The mineral water has a temperature of 34-54^o C and a capacity of 33 litres per second. The history of the settlement is connected with the mineral springs. Southeast of the settlement has been discovered a settlement mound/ The flat mound/ which has preserved seven cultural layers. In the vicinity of the town there are traces of Thracian settlements and many Thracian burial mounds. Banya is mentioned in the Ottoman documents from XV c. and in 2002 it has been proclaimed for a town.

The tourist sights of the town are: the church "St. Konstantin and Elena" (1860), the mineral bath (1936), the estates of the Bagarov's brothers, the estate of Tsar Boris III and the Flat Mound.