The rains are not abundant, around 400mm per year, but mountain ranges favor the formation of cloudiness and local rainfall, increasing these with altitude.

James I of Aragon took the castle from the Moors after the conquest of Biar and integrated it into the Kingdom of Valencia, under the Treaty of Almizra (1244), was in Castalla border with Castile.

However, the better-known Second Battle of Castalla on 13 April 1813 was an Anglo-Spanish triumph over Marshal Louis Gabriel Suchet's French army.

In the second battle, a Spanish infantry division under the leadership of Samuel Ford Whittingham particularly distinguished itself by repelling French attacks.

The economy of Castalla is based on farming (almonds, olives and grapes) and the industries of toys, construction materials, furniture and textile.