Cotacachi is a town in the province of Imbabura, Ecuador, is located at an altitude of 2,418 meters (7,933 feet).

Cotacachi is an artisan town famous for its leather goods and handicrafts. 

The climate is temperate throughout the year. Located in the inter-Andean valley, temperatures generally range between 21 and 27 degrees C (70 and 80 degrees F) during the day, and between 10 and 16 degrees C (50 and 60 degrees F) at night.

Cotacachi was designated Pueblo Magico (magical town) by the Ecuadorian Ministry of Tourism in 2019. It is one of the five original Pueblos Mágicos (Magic Towns) in the country. 

Cotacachi and the surrounding communities have one of the highest concentrations of indigenous peoples in the country of Ecuador and in recent years, the demographics have changed to include many foreign and Ecuadorian retirees who wish to live in a town of peace and tranquility.

This magical town is surrounded by Andean mountains and has become a haven of peace for foreign residents, mainly Americans.

Cotacachi also has the Intag Valley which is a place where nature, culture, customs and diversity come together harmoniously, so that whoever visits it will have a wonderful and unforgettable experience. It is a place that also offers a beautiful natural environment surrounded by lush rivers, tropical fruits, landscapes and ideal places for fishing.

This small town has become a paradise for several hundred foreigners, many of them retirees, and most of them Americans, who cite the beauty of the region, the warmth of the Ecuadorians, the excellent climate and the price of the properties as the reasons for their decision to move to Ecuador.