The village of Banite is situated in the Eastern part of the Smolyan Region, in the river basin of the Malka Arda river, at an above sea level altitude of 750m. The village is 45km away from Smolyan and was popular in the past under the name of Ludja.

There is a thermal mineral water spring in the center of the village, which – according to the legends – dates back to Roman times – 2-nd/ 3-rd A.D. The remains of an antique times bath have been discovered near the fountain, adding to the historical proposition that the village was flourishing in the past.

During archeological excavations in this area, ancient, handmade crafted items, dating back as the 2nd century, were found. The village was built during the 6th century and its purpose was to protect the passes in this part of the Rhodopes.

Banite village is popular with the thermal mineral springs, with a temperature of 43°С at the source and unique for the Bulgaria components. Its mineral content makes it suitable for prevention and treatment of a wide variety of diseases: of the locomotor system, the gastrointestinal system, the peripheral nervous system and others. Due to these thermal water qualities and thanks to the favorable effect of other natural resources, a balneotherapy sanatorium was built in 1979 along with a modern clinic.