The town is located adjacent to the neighbouring village of El Portet and both communities form a tourist resort on the Costa Blanca strip, with 8 km of coastline backed by mountains and vineyards.

Objects found in the Cova de la Cendra archaeological site on Cap d'Or - adjacent to the town - revealed that human habitation can be traced back to the Upper Paleolithic era.

Following the Umayyad conquest of Hispania, the area was eventually settled by Moors and influence of that culture can still be seen today in the region's architecture and municipal layouts.

Many of the names in the Teulada-Moraira area derive from the Moor settlement - such as Alcassar, Benimeit, Benimarco, Moravit, Pouet del Morro and Tabaira.

During the Reconquista, the Moors were expelled by Jaime I de Aragón and became part of the Kingdom of Aragon between 1270 and 1280 - this is still celebrated today during the annual Moros y cristianos festival.

During the 16th century, Barbary pirates raided the coast and Teulada was fortified with a lookout tower on the Cap d'Or by Felipe II.

The Castillo was armed with four bronze cannons and was badly damaged by the British fleet on 20 July 1801 during the French Revolutionary Wars although it has since been restored.

Locals eventually turned to fishing as an additional source of income and small buildings by the coast were built on the site of present-day Moraira to store tackle and equipment.

To preserve the heritage of the area, the Teulada council passed laws protecting the abundant pine trees and limited the height of buildings.

The championship of the district for open sea yachts is held at Easter, the regatta “Moraira Santa Eulalia” takes place at the end of September.