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Karlova Studánka is situated at an altitude of 785 m at the foot of the Praděd (Altvater) mountain (1,492 m) in the Jeseníky (Gesenke) mountain region. Since 1621 it was in possession of the Teutonic Order. Archduke Maximilian Franz, youngest brother of Emperor Joseph II and Emperor Leopold II, Grand Master of the Teutonic Order and later Bishop of Münster and Archbishop Elector of Cologne, founded the spa in 1780. The original name of the spa was Hinnewieder (or Hinundwieder). At the beginning of the 19th century, the place was renamed Karlsbrunn in honour of Archduke Karl who had won in the battle of Aspern against Napoleon in 1809 and who had restored the Karlsbrunn springs. The mineral waters of Karlova Studánka contain iron, salt and sulfur.