The municipality was situated at the confluence of the Fjærlandsfjorden/Esefjorden and the main Sognefjorden. The major industries in the municipality were tourism and farming. Balestrand became popular early due to the interest of artists, such as Hans Gude, Kjartan Lauritzen, Alfred Heaton Cooper, Hans Dahl, and Johannes Flintoe. Their paintings of the scenery around Balestrand inspired visitors, and Balestrand maintains its connection with art. Other industries include made-to-order kitchen interiors, local apple juice, and "Nesseplast" which produces industrial plastic. The Norwegian County Road 13 runs through the municipality.