Prutz is situated in the Oberes Gericht region, the most upper part of the Tyrolean Inntal, at the entrance to the Kaunertal. The village could flourish on the gentle slopes of the fan of the Faggen Torrent, which runs through the Kaunertal. Besides the villages, which rely heavily on tourism, Prutz is one of the economic centres of its region. A devastating fire in 1903 destroyed the old village. Its compact centre, however, still shows the characteristics of a West-Tyrolean village.