Žiri is the municipal center of the municipality of the same name. Žiri is the largest central settlement (3,657 inhabitants, 2020) in the area of Poljanska dolina and Rovtarsko hribovje. The municipality lies at the junction of three Slovenian provinces: Gorenjska, Notranjska and Primorska. Žiri lies in the basin of Žiri, with which the Poljanska dolina (valley) ends. The basin is bordered on the north-eastern side by the slopes of Žirovsko vrh, on the east by Goropeški grič, which ends with Vrh Sv. Trije kralji, Zavraška, Dolska, Vrsniška and Ledinska plateau are located in the south, and Mrzli vrh with Koprivnik in the west. The natural hydrological watershed between the Adriatic and Black seas also runs here.
In the municipality of Žiri with an area of 49.2 km2, there are 18 settlements with a total of over 5,300 inhabitants: Brekovice, Breznica pri Žireh, Goropeke, Izgorje, Jarčja Dolina, Koprivnik, Ledinica, Mrzli Vrh, Opale, Osojnica, Podklanec, Ravne pri Žireh, Račeva, Selo, Sovra, Zabrežnik, Žiri and Žirovski Vrh.
The most important traditional Žiro activities are shoemaking and lacemaking. The Alpina footwear factory grew out of the tradition of shoemaking, which established itself in the world primarily with sports footwear. For over 110 years, the Žiri Čipkarska school has been preserving the knowledge of bobbin-making, and in the organization of the Cvetke Bobbin Association, the Bobbin Days event takes place every year.
The geographical location of the place was the reason that various administrative divisions met here throughout history. In the period between the First and Second World Wars, the so-called Rapal border between the then kingdoms of Yugoslavia and Italy ran along the outskirts of the Žirovska basin, at that time Žiri was a border town. Both countries fortified the border with fortifications, which are still dotted around the surrounding hills today.