Municipality in the province of Belluno, located in a point where Val Padola opens into the Piave Valley, on the border with Austria, the town arises in a superb environment surrounded and protected by the peaks of the Dolomites, such as: Monte Popera, the Aiarnola and the Tudaio. It is a well equipped resort, that counts important numbers of tourists all year round: in Winter it is possible to ski and engage in various specialties, while in Spring and Summer, it is the ideal departure point for trekking along the paths and trails that lead to the discovery of Val Popera, of Valgrande, through the beautiful woods that shade the area. In use in the entire area, is the common dialect, Ladino, a language that derives from Latin, common in the East Central regions of the Alps. Besides tourism, the town's economy is tied to the trade of timber.
The area of Cadore was inhabited since Prehistoric times, as evidenced by important finds, subsequently to the Ligurians, the area was colonized by Illyrians, Veneti, Gauls and Celts. The Romans conquered the area and built an important road which linked the Val Pusteria to Auronzo. After the fall of the Empire, the area submitted the domain of Heruli, Ostrogoths, Franks, Byzantines and Lombards. Traces attest that, in the Comelico area, the first main centers date back to year 1000. The first settlement in the area of Santo Stefano was built on the left bank of the Piave, where today stands the district of Transacqua: the location was not chosen at random as in the nearby the presence of forests and waterways made possible the transportation of goods and encouraged all sorts of businesses. From the XV century the town became part of the territory of the Serenissima Republic of Venice, sharing, with the other localities of the Belluno area at first, and later those of the Kingdom of Italy, the subsequent historical events.

Attractions:
- the Parish Church of Santo Stefano, of ancient origins, dating from the XIV century, has submitted renovations in the late XVII century. It is preceded by a portico with a series of columns and a neo-Classical façade completed in 1817. Inside are preserved several paintings of the artist Monforte and two valuable wooden altars in Baroque style: one of the school of Brustolon;
- the Church of Costalissoio, dedicated to the Holy Trinity, founded in the XV century, was rebuilt for the first time in the next century and submitted it last renovations in the XIX century. The bell tower was built in the XIX century designed by Pante;
- the Church of Saints Philip and James in Campolongo, of ancient origins, was rebuilt in the XVIII century;
- the Church of Saints Laurence and Osvaldo in Casada in 1855;
- the Church of Our Lady of Grace in Transacqua.