This little village is called Sankt Oswald bei Plankenwarth. It is only a few kilometers to the west of the Styrian capital Graz and very close to the village Thal, the birthplace of Arnold Schwarzenegger. So this is the landscape where Arnold grew up!
The painterly effect was created in Photoshop, by adding a layer with Gaussian blur and blend mode "darken". After recombining the layers, contrast and brightness had to be adjusted again.