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The headquarters of Spiti Valley, Kaza is situated along the Spiti River at an elevation of 3,650 meters (11,980 ft) above mean sea level and is the largest township and commercial center of the Spiti Valley.

Kaza is characterized by Buddhist Monasteries, high-altitude villages, high-altitude farming, rugged rocky terrain, and rocky mountain slopes. It is mainly famous for the Sakya Tangyud (Tang-rGyud) Gompa which dates back to the early 14th century and is built like a fortified castle with massive slanted mud walls and battlements with vertical red ochre and white vertical stripes. It is on the edge of a deep canyon overlooking the town of Kaza.

Kaza is overlooked by high mountain ridges on all sides. It can be accessed in two ways: one from Kinnaur Valley and the other from the Lahaul Valley. The route through Kinnaur is open throughout the year, except for occasional short periods resulting from landslides or heavy snowfall. The other road starts from Manali which opens in mid-June. The town remains closed during winter months, normally from October end to June due to heavy snowfall.

Kaza is among the coldest places in India. The temperature varies greatly in different seasons and during the day. January is the period of the year with an average temperature of -25 °C, while July is the hottest month with an average temperature of 10 °C.

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