Valle lies in the middle of Setesdal, a valley and a traditional district in Aust-Agder that included the municipalities of Bykle, Valle, Bygland, Iveland, and Evje og Hornnes. The Otra river flows from the Hardangervidda plateau in Telemark to the north, through the Setesdal valley (and through Valle), into the sea near the city of Kristiansand.