Niederdorf stretches along the road on either side of the Rienz River in the upper Pustertal, east of Bruneck. Niederdorf stretches to the foothills of the Pragser Dolomites Mountains and the sunny terraced, gentle northern slopes of the valley, on which the scattered settlement of Eggerberg is to be found. The village has always profited from its location along the main road through the Pustertal. Tourism in Niederdorf is associated with the name of the world famous hotel owner Emma Hellensteiner ("Frau Emma in Europe, Autriche!"). Several historic guesthouses clearly reflect the importance of tourism, which has become the most important source of income since the middle of the 19th century.