The municipality is bounded by the Atlantic Ocean to the west, south and east. In the west is the lagoon of Charco Verde, which has a green pond and a colourful rim. To the north part of the Timanfaya National Park is within the municipality. The eastern part of the municipality is mountainous, and south west of the mountains the Rubicon plain stretches to the coast.
The largest town of the municipality is Playa Blanca on the south coast. The administrative centre is the much smaller town of Yaiza.
The population is 9,664 and the area is 211.84 sq km. The main industries are agriculture and tourism.