Considered the historical capital of the county of the Alt Berguedą, Bagą occupies a rugged terrain that is not particularly agriculturally productive. The municipal area borders on La Cerdanya and Castellar de n'Hug to the north, Gisclareny to the west and Guardiola de Berguedą to the south and east. Located on the south face of the Moixeró and Tosa mountains, close to the confluence of the Bastareny and Gréixer rivers, Bagą’s forests are populated by Scots pine, mountain pine, oak and European beech. Dryland and irrigation farming, animal husbandry and forestry have been the traditional cornerstones of the Bagą economy. The textile industry that developed along the rivers played an important economic role in the past. Bagą nowadays relies mostly on trade and tourism.
A town steeped in tradition and with a rich history, Bagą rose to prominence during the Middle Ages with the arrival of the barons of Pinós, who chose Bagą as the centre of their barony and set about constructing the town, whose well-preserved ruins are still evident today in the narrow streets, shady squares, towers and the remains of the city walls. Wandering around its quiet streets is to step back a thousand years in time. The square, the palace, the Portella tower, Casa Solanell and the Gothic church of Sant Esteve together make up one of the most magnificent historical centres in the county.