The former spa is situated 7 km south-west of the town Nové Hrady. It lies on the slope of Vysoká mountain (High) in the Novohradské Hory (Nové Hrady Mountains), 794 m a.s.l.

The first mention of the village dates back to the 16th century. The spa, called Vilémova Hora ("William's Mount"), was founded in 1564, near the spring of healing water. The spa was a very well-known place and a lot of members of the Czech aristocracy visited it.
The new name Hojná Voda ("Healing Water") originates from 1653, when the village became a small town. The glassworks were founded here at the same time.

The writer Zikmund Winter often visited this village between 1893 - 1910.

The nature reserve of the same name, one of the oldest reserves in Bohemia, lies about 4 km south-east of the village.
Hojná Voda is a favourite starting point of trips to the peaks of Kraví Hora (Cow Mount - 953 m) and Kuní Hora (Marten Hill - 925 m).