The mining town of Pyramiden is located on flat terrain in a spacious plain between the mountains. It takes its name from the pyramid-shaped mountain situated behind the settlement.
The Soviet, later Russian, mining town of Pyramiden was developed as a model community. A cultural center, swimming pool, library, hospital, school, childcare, cinema, and museum were built. There was a barn with cows, pigs, and chickens, as well as a large greenhouse. The community produced milk, meat, eggs, vegetables, and flowers. Both the wooden and brick buildings feature fine architectural details, as aesthetics were emphasized in the town's design. The town was organized around an open, grass-covered central area with a bust of Lenin in the middle, surrounded by communal facilities, houses, and apartment blocks. The mining-related and technical facilities were located in other areas of the settlement.