Subject and purpose of work: The aim of the study was to determine the significance of the borderland location as a factor in the development of the Terespol commune. The paper answers the questions how the borderland location is perceived by the inhabitants, whether it gives an opportunity for the development of the Terespol commune, and what is the significance of the borderland location compared to other factors in the commune's development. Materials and methods: The study uses the method of a survey with a representative sample of 50 inhabitants of the Terespol commune. The literature on the subject related to the factor of the borderland location and its role in local development as well as planning documents concerning the development of the commune were investigated. The analyzes were supplemented with a review of official statistical databases describing economic activity in the commune. The time scope of the research covers the years 1990-2021. Results: In the light of the research, the borderland location is the leading factor in the development of the commune, and keeping it on the current development path and the growing significance of this factor may increase the chance of building a “New Silk Road’. Other development potential are rich natural and landscape values which favour the expansion of tourism and agriculture. The potential of the local community – residents, local entrepreneurs, and local government – is assessed as low. In the opinion of the inhabitants the potential of the location is also not fully used. Conclusions: The commune's potential should be used in the development of additional production specialties, its multifunctionality and better adaptation to new socio-economic conditions resulting from the economic transformation and the challenges of increasing competitiveness. It is necessary to activate other functions and factors, whose significance has decreased over the years, including human capital activation. A fuller use of the commune's potential should be based to a greater extent on the participation of the local community.