This commune belongs to the Cautín province, in the IX Araucanía Region. There are three urban areas: Barros Arana, Hualpin and Teodoro Schmidt, the least being the commune head.
Teodoro Schmidt is located 72 km from Temuco, in an area of wide beaches, agricultural and cattle farming industry, being these the main economic activities having the potato, wheat and oat as the most important products.
This area has rainfall throughout the year, although at a lower scale during summer.
Temperatures in the coldest months reach an average of 18 º (64°F)and -3 ºC (37°F), while during summer it can get up to 10ºC (50°F).