Melgar is located in the Sumapaz River Valley and borders the Department of Cundinamarca and Sumapaz River to the north, town of Icononzo to the east, the towns of Cunday at the south and Carmen de Apicala to the west.

It is a major inland resort, which the people of Bogotá visit on weekends to flee the capital's cold weather for the warm climate of the valley.

In 1601 its name was changed to "La Candelaria", given by Captain Juan Lopez de Herrera.

In the early 18th century the village was destroyed by a fire when the local religious celebrations were taking place.

The village was rebuilt in 1789 by the Dominican community in the grounds owned by Cardenas Varastegui at the valley of the Sumapaz River.