Perućac is a village in western Serbia in the immediate proximity of the border with Bosnia and Herzegovina. It is situated near the 346 km-long Drina River, which constitutes the natural border between Serbia and Bosnia.
The main feature of the village is the Bajina Bašta hydro-electric power plant, which is the second largest of its kind in Serbia. It was built in 1966 as a result of a joint venture by ex-Yugoslavian and Japanese companies. Between 1976 and 1983 a reversible pumping station was built, which was the second phase of the project. Excessive electrical power produced during the rain season was used to pump water from Lake Perućac up to Mountain Tara, some 600 metres above. Therefore, a new artificial lake was created in the mountains, called Beli Rzav.
Perućac features what is reputdely Serbia's smallest river — the Vrelo. The latter is known as the "One-year-long River", due to its length—365 m—from its source to its end, with the length in metres corresponding to the number of days in a year. The Vrelo flows into the Drina just a few hundred metres below the artificial lake.
During the summer days, Lake Perućac is the place where many of the residents of the and the town of Bajina Bašta come to sunbathe, swim and fish. Perućac is also where the 56 km-long canyon of the River Drina begins.