Montecchio is a comune (municipality) in the Province of Terni in the Italian region Umbria, located about 50 km south of Perugia and about 30 km northwest of Terni.
It is one of I Borghi più belli d'Italia ("The most beautiful villages of Italy").
The name Montecchio is traditionally linked to Mons Herculis. Alternative historical forms include Castro Monticoli, while the name has also been connected to the Latin munticulus, meaning "small hill".
The area of Montecchio was already inhabited in prehistoric times, as evidenced by a pre-Roman necropolis in the San Lorenzo valley.
The settlement is first mentioned in written sources in 1154. Around 1165 the original castle nucleus was built by the Chiaravalle family. The castle was originally built as a place of exile during factional conflicts in Todi, when the Guelphs expelled the Ghibellines from the city. The settlement remained historically part of the territory of Todi.
By 1190 a second defensive wall had been constructed, reflecting a growth in population, and in the mid-13th century the fortifications were further expanded.
During the medieval period Montecchio was ruled successively by the Chiaravalle, , and Colonna families. In the 16th century it came under the control of the Atti family of Todi, and in 1607 authority passed to the Corsini family.
In the second half of the 16th century local statutes were established.
Following the Papal Restoration in 1814, Montecchio was administratively aligned with the nearby settlement of Baschi. In 1817 it was classified as a dependent district of Baschi.
In the 1850s Montecchio had a population of 738 inhabitants, of whom 601 lived in the town and 137 in the surrounding countryside.
In 1948 Montecchio was separated from Baschi and became an independent municipality.
Montecchio is located about from Baschi.
Montecchio borders the following municipalities: Avigliano Umbro, Baschi, Civitella d'Agliano, Guardea, Orvieto, Todi.
The municipality includes the localities of Fratta, Le Case, Melezzole, Monastero, Montecchio, Pantanelli, Pozzociolino, Pranzuto, Prato Giardino, San Martino, San Rocco, Schiasciarelle, Tenaglie.
In 2021, 367 people lived in rural dispersed dwellings not assigned to any named locality. At the time, most of the population lived in Montecchio proper (671), and Melezzole (159).
The Castle of Carnano stood near the Abbey of Sant'Andrea, of which little is known. Established around the year 1000, it occupied a dominant position over the Tiber Valley on a rocky spur, as reflected in the early Romanesque masonry of the church of Santa Maria. The castle is depicted intact in a 1583 map by Ignazio Danti, but already shown in ruins in a 1585 plan after its destruction in 1553, ordered by Pope Julius III to punish the Baschi counts. The site was razed along with the abbey, and today only ruins remain, including parts of the apse, an altar, a cistern, and sections of collapsed walls.
The production facilities of the Falesco winery are located there.