The Municipality of Žagubica is a Municipality in the Baničevo District in Central Serbia. The Municipality covers the upper part of the Mlava Valley and is divided into two parts, the hills, and the mountain rim. The main and central part is the Žagubica Valley, the lower part of which is about 300 meters above sea level. The other, smaller and lower part is the Krepoljinsko-Krupajska Valley, with a lower part of about 220 meters above sea level. According to the 2002 census, it had a total of 16,919 residents, that is 22 residents residents per 1 km2, thus is one of the least populated municipalities in Serbia.