Imbabura Otavalo Otavalo is an Andean town in Imbabura, about 2,550 meters high and 110 km north of Quito, between the Imbabura and Cotacachi volcanoes. It is the center of the kichwa Otavalo people, known for weaving and for the Plaza de los Ponchos craft market, which is larger on Saturdays. Around it are the Cascada de Peguche, the Laguna de Cuicocha and Cotacachi. Days are mild and nights cold.