It comprises an approximately 12 kilometres (7.5 mi) long stripe of beaches and landforms and extends on both sides of Route 10.

Further east it borders the resort Pinares - Las Delicias with the oblong lake, Laguna del Diario, as the natural limit between them.

Established by Antonio Lussich, who purchased the land and in 1896 founded his namesake arboretum, Punta Ballena and the neighboring resort city of Punta del Este grew to become leading destinations for tourism in Uruguay during the summertime high season (December through February).

Páez Vilaró began his "living sculpture" in 1958, sometimes adding a new room to host a particular friend, and eventually created a lodge within Casapueblo.

The name "Playa Portezuelo", is sometimes given to describe all the long stretch of the beach up to Punta Negra.