Serra de Água is situated 8 kilometres (5.0 mi) from the municipal seat of Ribeira Brava, connected by a regional road.

[3] It is bordered on the west by Tabua, São Vicente to the northwest and northeast; Ponta Delgada in the northeast; Curral das Freiras and Campanário to the east, while Ribeira Brava is to the south.

Encircled by tall mountains, the parish is located in a valley and supported by diverse ravines, making agriculture difficult to sustain.

[3] Yet, agriculture is the predominant economic activity in the civil parish, a function that has persisted on a subsistence basis since the settlement of Madeira.

[3] Secondary industries are primarily hotelery and civil construction, which occupy a considerable portion of work placements.