The settlement is built at an altitude of about 750 meters, near the Greek-Bulgarian border. Pagoneri means "ice water". It was named after the icy water of its spring, which ends at two fountains in the south part of the village. Its older name, Tseresovo, means "cherry village".

The village has been listed as a traditional settlement since 1983, due to the existence of two storey stone buildings of local Macedonian architecture. Their main feature is their sahnisia, a traditional style of the facade. The cobbled streets between the houses are paved with stone. The village was once famous for its stone craftsmen.