The town is nationally known for the nearby monolith known also as El Peñol, which is a tourist attraction.

The town was originally founded along the Negro-Nare River in 1714 by Fray Miguel de Castro y Rivadeneiro.

[3] In 1971, Empresas Públicas de Medellín determined that more water and power was needed to support the rapidly growing city of Medellín, located approximately 50mi/30km to the west, and decided that the Negro-Nare River should be dammed at Guatape, flooding the Negro-Nare River valley in which El Peñol was located.

A cross now marks the location in the reservoir above the former parish of El Viejo Peñol that fronted the town plaza.

[4][5] El Peñol has a subtropical highland climate (Köppen: Cfb)[6] consistently warm temperatures and abundant rainfall.