Municipality of Pehcevo

Pehčevo exists in the Maleševo Mountains as North Macedonia's least populated urban municipality, where isolation produces specialty cheese rather than economic development. This settlement of 3,983 residents occupies the high ground between the Berovo and Delčevo valleys, 10 kilometers from Berovo and 27 kilometers from Delčevo, near the Bulgarian border.

The formation era established pastoral traditions in terrain where arable land covers only 20% of municipal territory, with the remainder in pastures, forests, and rough ground. The Bregalnica River provides water access, but the elevation and mountain conditions limit agricultural options to what sheep can graze and potatoes can tolerate.

Today Pehčevo produces the maleševsko sirenje (Maleševo cheese)—the country's top-priced sheep cheese, reflecting both quality and the scarcity premium of limited production. The economy combines this specialty agriculture with livestock farming and emerging winter tourism potential. Craftspeople maintain traditional skills that attract tourists seeking authentic Macedonian production. The regional road R-523 connects through Delčevo to Berovo and onward to Strumica, though the mountain location remains relatively isolated.

By 2026, Pehčevo's small population and limited accessibility constrain development options. The cheese reputation could anchor artisanal food tourism; winter sports potential exists in the mountain terrain. But the fundamental question facing North Macedonia's smallest urban municipality is whether specialty production and niche tourism can sustain even the current modest population against migration pressures.