Where is the third eye?

The third eye is located just between the eyebrows and

perhaps 2-4 cm (depending upon the person size etc)
above the junction made between the two eyebrows and
the top of the nose.
The third eye is a non-physical eye, and is actually situated
within the Etheric body. It is the Etheric body that
surrounds and baths all physical cells, and allows subtle
vital energy to flow from both the astral planes and mental
planes into the physical body.
The energy from the astral planes and mental planes are
far faster than the physical plane. Without a slowing down
of these energies as they permeate the physical body, the
actual physical matter would be made to vibrate with such
speed, the matter would disintegrate and burn.
The Chakra system
The third eye belongs to a system of energy transformers
called chakras. These are purely locations within the aura,
where different environments (from the different bodies)
are brought together and form cone shaped energy wheels
often referred to as Chakras.
Yogis and others who practice mystical arts believe that
the chakras can be activated by stimulating them with a
very powerful energy referred to as the Kundalini.
The Kundalini energy is said to reside dormant in
normal people until such times they experience an
awakening. The kundalini is said to then rise up from its
sleeping position, namely as a coiled energy (like a
spring) in the region between the base of the spine and the
genital area.

From here it travels up through a channel referred to as

the Sushumna nadi. The Sushumna passes through
various energy vortices or chakras.
Mystics belief that seven major Chakras exist, starting
from the lowest and slowest energy wheel located at the
base of the spine. This Chakra is very important and
conveys to the person a sense of self-preservation and
responsibility.
The chakras are located within the Etheric body,
associated with the vertical axis of the spine. As one
progresses up the spine towards the head, the chakras are
thought of as being more evolved.
The base Chakra is deemed to be quite basic, and most
people will operate from this Chakra or its near neighbour
the sex chakra.
Over activation of this chakra will lead the person to an
over active interest in sex and its associated behaviours.
Important point
The chakras below the neck are really associated with the
persons own experiences in the physical world, and
having a sense of personal power and connectivity to
everyday life.
Important point
The chakras above the neck are associated with greater
aspirations, spirituality and necessary for true spiritual
evolution. In this sense, they allow the person greater
insight into increasing levels of universal law. Since the
chakras above the neck are associated with more universal
aspects of life, development of the brow chakra allows the
person to be more aware of:

Clairvoyance and other related abilities

Development of Intuition
Higher mind and philosophical understanding
Increased inspiration
Increased depth and insight into everyday life. Not
based upon a set of dogma rather on the ability to see
what is really going on.