The department of La Paz is located in the extreme southwest of Honduras, on the border with El Salvador, at an altitude of between 1,000 and 1,600 meters above sea level. The department was created on 28 May 1869. Prior to its creation as a department, it belonged to the department of Comayagua, the historic centre of coffee production in Honduras.
The department of La Paz covers an area of 2,525 km² and its capital is the city of La Paz. Its territory is divided into 19 municipalities, 114 villages and 1,143 hamlets. Its inhabitants are mainly engaged in agriculture, livestock farming and trade. The main crops are coffee, corn, henequen, sugar cane and fruit.