Skofja Loka is located at the confluence of rivers Poljanska Sora and Selška Sora. Sora field is surrounded by a dynamic world of the Skofja Loka Hills and Polhov Gradec Hills. Skofja Loka is the best preserved medieval town in Slovenia.
Tourist farm Megušar is located in one of the oldest villages in Slovenia Stara Loka which is a part of town Škofja Loka.
The building prides itself with an exceptional position in the centre of the mediaeval Škofja Loka and by the entrance to the Selška dolina valley.