It was populated gradually during the 20th century, forming a series of resorts starting from Barra de Carrasco in the west, up to El Pinar in the east.

The abundance of sandy soils made possible the existence of multiple sand pits, which gave rise to the various lakes that characterize the area.

Some lakes are used for bathing and water sports, while others are not suitable for these applications and, instead, act as a refuge for many species of birds and animals.

The population growth has not been accompanied by an adequate development of infrastructure services, so that much of the city lacks public sanitation and many roads are often impassable during rainy periods.

Ciudad de la Costa has a humid subtropical climate[5] typical of the region, with warm to hot and wet summers and mild winters with relatively evenly distributed precipitation year-round.

The 2011 census results mention the following non-coastal censual areas as parts of Ciudad de la Costa.