Punakha valley has a pleasant climate with warm winters and hot summers. It is located at an average elevation of 1200 meters above sea level. Owing to the favorable climatic conditions, rice grows very well in this region and is the main cash crop cultivated here.
The Punakha Dzong is located at the confluence of the Pho Chhu (father) and Mo Chhu (mother) rivers in the Punakha–Wangdue valley. The source of the Mo chu river is in the northern hills of Lighsi and Laya in Bhutan, and in Tibet. The Po Chu River is fed by glaciers in the Lunana region of the Punakha valley. After the confluence of these two rivers, the main river is known as Puna Tsang chu or Sankosh River and flows down through Wangdue Phodrang, crosses the Bhutan–India border at Kalikhola and eventually meets the Brahmaputra River.
In addition to its structural beauty, Punakha Dzong is notable for containing the preserved remains of Zhabdrung Ngawang Namgyal, the unifer of Bhutan as well as a sacred relic known as the Ranjung Karsapani. This relic is a self-created image of Avalokiteswara that miraculously emerged from the vertebrae of Tsangpa Gyarey the founder of the Drukpa School when he was cremated.