Oetz is situated at the foot of Mount Acherkogel, the most northern summit higher than 3000 m in the Alps, within the deposition area of the Tschirgant and Tumpen Landslides (with the natural monument of Lake Piburg). Oetz is a scattered village with a mild climate. The "modern" settlement along the main road stands in contrast to the old centre with its ornamented houses and the parish church. Oetz with its historical connection with Innsbruck over the high valley of Kühtai, was the starting point for the settlement and development of the lower Ötztal: old hamlets and new settlements have been built along the slopes. The cultivation of grain has had a long history in the valley and can still be found in Oetz. Tourism with the skiing and hiking area of Hochötz plays a significant role in the village.