The municipality of Fuencaliente covers the southern tip of the island La Palma. The landscape is dominated by the volcanic ridge Cumbre Vieja. The southernmost volcano on this ridge, Teneguía, last erupted in 1971. The fertile soil is used for growing grapes (malvasia wine) and bananas. The yearly production of wine from its 800 ha of vineyards is 2 million litres. There are salt evaporation ponds near the lighthouse, on the southernmost point of the island. Fuencaliente is located 23 km southwest of the island capital Santa Cruz de la Palma.