The caldera was discovered in 1978 thanks to Landsat imagery. It lies in Bolivia next to the Chilean frontier. The terrain is difficult to access being located at altitudes between . The caldera is named after Cerro Guacha, a feature named as such by local topographic maps. Later research by the Geological Service of Bolivia indicated the presence of three welded tuffs. Paleogene red beds and Ordovician sediments form the basement of the caldera.