Otavalo, capital of Otavalo Canton, has a population largely made up of the Otavalo indigenous group. It is located in Imbabura Province of Ecuador. According to the 2022 census, the town had a population of 41,718 and is situated at an elevation of 2,532 metres (8,307 ft). It is surrounded by the peaks of Imbabura, Cotacachi, and Mojanda volcanoes. Mario Conejo is the current mayor of the city of Otavalo.

The Otavalos are an indigenous people native to the Andean mountains of Imbabura Province in northern Ecuador. The Otavalos also inhabit the city of Otavalo in that province. Commerce and handcrafts are among the principal economic activities of the Otavalos, who enjoy a higher standard of living than most indigenous groups in Ecuador and many mestizos of their area.