Atuntaqui is located just 13 kilometres (8.1 mi) from the larger city of Ibarra, north along the Panamerican Highway.

Jacinto Jijón y Caamano identifies it as a 'land rich in truth'; González Suárez rejects this meaning and translates it as 'big barn'.

The climate is dry and mild and it has an average annual temperature of 18o C. On August 13, 1868 Atuntaqui was partially destroyed by an earthquake that left thousands dead and homeless.

After its reconstruction and its subsequent development, the textile factory, which set up an hydroelectric plant on the banks of the Ambi river and the arrival of the railway in the town of Andrade Marín, located 2.5 km east of Atuntaqui, became especially important.

Atuntaqui has great tourism potential, offering textiles, crafts, cuisine and culture, a varied and interesting mix to be enjoyed all year round.