It is situated at the mouth of the Valvarrone. In this area, like thc rest of the valley, traces of Callic-Roman civilisation have been found. During the Middle Ages the parish of Dcrvio became important.

It took in a number of centres along the lake as far as Dorio and in the valley as far as Tremenico. The town consists of the three nuclei of Borgo, an old fishing centre, and Villa, which is in a higher location. In the locality of Castello, on a hill that overlooks the town, the remains of a tower, which was part of medieval fortifications, are still visible.

The mountains which surround Dervio offer many opportunities for excursions or walks; such as those which lead to the rifugi (huts) of Bellano and Nogara. Legnoncino and Legnone are also popular destinations for excursions. One of the traditional activities in Dervio is the production of umbrellas.

The Romanesque Church of San Quirico and Santa Giulietta is worth a visit. There are other small villages along the route that are interesting.