Cerro Guacha is part of the Altiplano-Puna volcanic complex, an area of extensive ignimbrite volcanism in the Central Andes between the Altiplano and the Atacama and associated with the Central Volcanic Zone of the Andes. Several large caldera complexes are found within this area, formed by crustal magma chambers generated by magmas derived from the melting of deep crustal layers. Present day activity is limited to geothermal phenomena in El Tatio, Sol de Manana and Guacha, with recent activity encompassing the extrusion of Quaternary lava domes and flows. Deformation in the area occurs beneath Uturuncu volcano north of the Guacha centre.