South eastern part of the Krynica Zdroj municipality falls partly on the area of Beskid Niski, where the peaks do not exceed 1000 m above sea level. The town expanded along the valleys of small streams - Palenica, Czarny Potok and Kryniczanka. There is also the picturesque River Muszynka, which flows directly into the Poprad river.
Town centre is located in Kryniczanka’s valley. Most of the spa buildings, is located at an altitude of 550-650 meters above sea level, some spas and private buildings, however, are well over 650 meters (eg, Collie, Panorama). The development of the town and a constant influx of population from rural areas led to encroachment of buildings on the slopes (Zamkowa street), and in the surrounding valleys (Słotwiny, Czarny Potok – nowadays specific neighborhoods of Krynica, developing tourism throughout the year).