According to Wikipedia
Feng Shui is a is a Chinese philosophical system of harmonizing everyone with the surrounding environment. It is closely linked to Daoism... [and] is one of the Five Arts of Chinese Metaphysics, classified as physiognomy (observation of appearances through formulas and calculations). The feng shui practice discusses architecture in metaphoric terms of "invisible forces" that bind the universe, earth, and humanity together, known as qi.
Historically, feng shui was widely used to orient buildings—often spiritually significant structures such as tombs, but also dwellings and other structures—in an auspicious manner. Depending on the particular style of feng shui being used, an auspicious site could be determined by reference to local features such as bodies of water, stars, or a compass.
...A traditional explanation of qi as it relates to feng shui would include the orientation of a structure, its age, and its interaction with the surrounding environment, including the local microclimates, the slope of the land, vegetation, and soil quality.