The city is located 8 km (5 miles) northwest of the artisan city of Otavalo, about 4.8 km (3 miles) west of the Panamerican Highway (Route 35). It lies in the valley between the volcanos of Imbabura and Cotacachi. There are two main entrances to the city, both stemming exit off the Panamerican Highway. The first entrance feeds directly into the city's main square, while the other turns into the famed Calle 10 de Agosto (locally known as Leather Street).