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Velingrad was founded in 1948 after the unification between the villages Chepino, Ladzhene and Kamenitsa. Whereas Chepino and Kamenitsa are older settlements, Ladzhene was founded after 1878 by Bulgarian refugees from Macedonia, because their region remained under Ottoman rule after the Treaty of Berlin.
Velingrad is situated at 750–850 m above sea level. Summers are warm and winters are cold. The average annual temperature is 10°C, while the average July temperature is 19°C. The annual duration of sunshine is about 2,000 hours. The relative air humidity ranges from 65 to 75%. Surrounded by age-old pine tree woods, the town favors abundant sunshine. This exclusively rare and valuable combination has a beneficial influence on the process of ionization (negative ions are prevailing) and is of definite therapeutic importance.
There are more than 90 mineral water springs with curative and preventive properties in and around the town. The mineral waters (from springs and wells) vary considerably in temperature, mineralization, radon, silicic acid and fluorine content, and are suitable for treatment of a wide range of diseases. 9000 litres of water per minute spring from the five thermal and mineral deposits in Ladzhene, Kamenitsa, Chepino, Rakitovo and Kostandovo.
Together with the numerous mineral waters, Velingrad boasts another natural phenomenon as well — the Kleptuza, the biggest Karst spring in Bulgaria, with an average discharge of 1200 litres of ice-cold water per second.