It is located around 20 miles (32 km) inland from the Pacific Coast at Bucerías and had a population of 5,528 in 2000.
Historical crops still being cultivated in the valley include tobacco, corn, beans and chiles.
An abundance of mangoes, chirimoyos, capomos, and date palms grow in the area.
They cultivated the fertile fields of the valley, rather than going to the sea, for their main food sources.
The village was renamed "Valle de Banderas" (Valley of the Flags) by Francisco Cortés de Buenaventura, the nephew of Hernán Cortés, when he conquered the Pacific coast region in 1525.