It borders with Prado to the west, Aires Puros to the north, Brazo Oriental to the east and Reducto to the south.

[2] The neighborhood emerged on August 16, 1868, when the Sociedad Anónima de Fomento Montevideano founded the Pueblo Atahualpa (Spanish for 'Atahualpa Town'), celebrating the occasion with the launch of a hot air balloon with national symbols.

[3] Previously, the area was outside the walled city and was used for agriculture due to its proximity to the banks of the Miguelete Creek.

[5] In addition, a tram line that connected the area with the central business district was built.

[6] Different National Historical Monuments are erected in Atahualpa, such as the neo-Gothic Church of the Sagrada Familia –built by the Jackson-Errazquín family as a private chapel in their residence–,[7] and the Casa Quinta Vaz Ferreira –a Victorian-style residence, which served as the home of the lawyer, philosopher and writer Carlos Vaz Ferreira–.