Taiping Hou Kui comes from the village of Xinming in Taiping county, Anhui Province, at the southern foot of the Huangshan mountains. The Taiping area is very remote and difficult to get to. All traffic in and out of this area is by boat.  Situated at one end of Taiping Lake it is surrounded by pine and bamboo forests.  Taiping Lake is the largest man-made lake in Anhui Province.  The history of the Taiping Scenic Area dates back to 109 BC during the Han Dynasty. The area is blessed with a superior ecological environment. 400 kinds of plants from 41 species grow on the lakeshore. Nearly half of them are ornamental plants. The area is inhabited by about 170 birds, 70 mammals, and 40 freshwater  fish. The area is also rich in fruits and various local specialties, such as the world famous Taiping Hou Kui green tea, Huangshan Maofeng green tea, Longmen persimmon, Chinese gooseberry, Qiaoshan Chinese torreya nuts and Taiping silver fish.

The core producing area for Taiping Hou Kui is comprised of three townships, Houkeng, Hougang and Yanjiacun.  The first of these, Houkeng, is considered to be the best production area due to its northeast facing location where the hillside is shaded and blanketed in clouds and mist which hydrate the plants and protect them from strong sunlight and afternoon heat. Because the bushes are protected from direct sunlight the leaves are very high in theanine which contributes to the natural sweetness of the tea.