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Like pearls scattering in the East Sea, the Penghu archipelago is located in the southwest of the Taiwan Strait. It is between Chiai county and Kimen county, facing Taiwan on the east, and Fuchien Province on the west, linking Matsu archipelago, Tachen island and Choushan archipelago on the north, and Tungsha islands and Nansha islands on the south.

The interlocking influences of environment, the Han culture and historical factors have combined to form unique human characteristics in the Penghus. Immigrants from along the coast of Fuchien Province established here a lifestyle to accommodate themselves and cope with nature, and the traditional Chinese agricultural culture had to be adjusted to the effects of barren land, high winds, and lack of rainfall on these islands, as most of the inhabitants made their living by fishing, Europeans called it "Islands of the Fishermen."

Penghu's inhabitants have lived a very simple life and have adapted to their natural circumstances. The area itself, largely under tight security measures given the military value arising from its strategic geographical position, has never been developed on a large scale. Its long-time cultural assets, and a unique life-style that adapts to nature in harmony instead of undertaking full-scale development, have therefore been able to be maintained as a basic and appropriate means by which mankind copes with the nature.