The city is built on the bank and on the peninsula that enters into the graphic lake of Kastoria on an altitude of 600 metres. Kastoria is known for the process and trade of fur that brought economic blossoming in the region. Samples of this boom are its mansions with notable architecture. The houses are built on the hill slope looking over the lake around which are squares, parks, restaurants and coffee shops.
The lake of Kastoria or Orestida is enclosed by mountains and shapes a natural basin which is a wetland with a lot of seldom aquatic and predatory birds.
The mountainous area of Grammos has forests of beeches, planes, firs, pines, chestnuts and is the shelter for wild animals and birds. In Grammos are the sources of rivers Aliakmon and Sarantaporos and the preserved monument of nature the forest of Barougas.
The mountainous complex of Vitsi has thick forests of beeches and is an ideal biotope and shelter for many animals threatened by extinction like the coffee bear, deer, wolves and wild boars. Vitsi with its traditional settlements, the forests with the small lakes and the enchanting routs is offered for walks and excursions.
Its history is long through the centuries as the prehistoric and archaeological discoveries testify. The wider region is identified as the ancient Orestida where Orestes Macedonians lived, as Herodotus mentions them. The Roman historian Titos Levius reports the city of Orestidas with the name Kilitron. In 197 BC the Romans occupy the region and later the Byzantine emperor Dioklitianos names the city Dioklitianoupoli. In later years the city was attacked a lot of times from barbarians and was depopulated. Emperor Ioustinianos builds on its ruins and fortifies the city that exists until today. The name Kastoria that is reported since the meta-byzantine years, it took from the castors that lived in its lake. Until the Ottoman domination the area was occupied from Bulgarians, Serbs, Normen e.t.c. The people of Kastoria participated at the revolution in 1821 and in the Macedonian fight.