Located in the north east of the Antequera region, in a landscape primarily made up of hills and ridges which are home to olive groves and cereal fields. It dates back to the 18th century, when the buildings which began to appear around the Franciscan monastery eventually formed a village. Villanueva de Algaidas was the birthplace of the famous sculptor Ortiz de Berrocal, whose works are housed in an interesting museum in the village.
Four villages in the province of Málaga are called "Villanueva": Villanueva de Algaidas, Villanueva de Tapia, Villanueva del Rosario and Villanueva del Trabuco. All four are located in the north east of the province, the former two further to the north, between the municipal boundaries of Cuevas de San Marcos and Archidona and near the border with the province of Granada to the east; Villanueva del Rosario and Villanueva del Trabuco are in the north of the Axarquia region and are also adjacent to Archidona and the province of Granada.