It is a small valley which is drained inland by the River Estepona. This valley is surrounded by mountains to the east, south, and west; it is open to the north to the Cantabrian Sea. The municipality adjoins the sea to the north, the town of Bermeo to the east, the town of Mungia to the south, and the towns of Maruri-Jatabe and Lemoiz to the west. The town is well connected to the regional capital, Bilbao, with regular Bizkaibus services.