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Sankt Peter am Ottersbach is situated at an altitude of 380 m on the stream Ottersbach in the district Radkersburg in southeastern Styria, about 10 km north of the border to Slovenia. The municipality has a population of about 2,300 (2005) and comprises the cadastral districts Edla, Entschendorf, Perbersdorf, St. Peter am Ottersbach, Wiersdorf and Wittmannsdorf.

The foundation of the settlement dates from about 800 years ago. St. Peter am Ottersbach is the largest municipality of the district (it has almost twice as many inhabitants as the district's capital, Bad Radkersburg. The municipality is a well-known wine-growing community. In 1974 St. Peter am Ottersbach was granted the status of a market town.