Thinking about moving to Ollantaytambo? This extraordinary little town at the western end of the Sacred Valley offers something you won’t find anywhere else: the chance to live among some of Peru’s best-preserved Inca architecture, surrounded by dramatic mountains and countryside.
By Chere Di Boscio
Ollantaytambo is best known as “the last living Inca town.” And while that description has become something of a tourism cliché, there is a remarkable amount of truth behind it.
Unlike most archaeological sites, Ollantaytambo isn’t simply a collection of ruins. People still live in and around the historic town, and many of the streets, walls, water channels and urban structures follow the original Inca layout.
The Ministry of Culture describes the archaeological complex as containing structures from the imperial and late Inca periods, including plazas, residences, ceremonial areas, agricultural terraces, storage buildings and other infrastructure.
For visitors, this makes Ollantaytambo one of the highlights of the Sacred Valley.
For someone considering living in Ollantaytambo, however, there is another side to the story: this is a small town with a huge tourism industry. And whether that sounds wonderful or frustrating depends very much on what you’re looking for.
What is Ollantaytambo like?
Ollantaytambo is considerably smaller and quieter than Urubamba.
Its historic centre is made up of narrow cobbled streets, stone walls, small plazas and traditional buildings. Water channels still run through parts of the old town, and the distinctive Inca block layout remains remarkably evident.
The town is surrounded by mountains, agricultural land and spectacular archaeological remains. It’s also one of the main departure points for travellers heading to Machu Picchu by train. That combination gives Ollantaytambo a very particular atmosphere.
During the day, the town can be busy with tourists carrying backpacks and rolling suitcases through the streets. Restaurants, cafés, hotels, souvenir shops and tour businesses cater heavily to visitors.
Then, as the day-trippers and travellers heading for Machu Picchu move on, the atmosphere becomes much quieter.
For residents, that’s an important part of life here.
Living in a real Inca town
The most extraordinary thing about living in Ollantaytambo is simply where you are living.
The modern town occupies the same general location as the historic Inca settlement, and some of the old urban structure remains integrated into everyday life.
The town was planned around rectangular blocks or canchas, with entrances leading into central courtyards. The surviving layout gives Ollantaytambo a character that is almost impossible to reproduce anywhere else.
This isn’t a reconstructed archaeological village built for tourists; it’s a functioning community built around an extraordinary piece of history. Of course, that also comes with restrictions and responsibilities.
Ollantaytambo’s archaeological areas and historic buildings are protected, and development within the heritage area is subject to regulations. The Ministry of Culture has recently taken action over unauthorised construction within the archaeological park, highlighting just how seriously these protections are treated.
If you’re thinking about buying property here, you’ll want to understand exactly what restrictions apply to the property before making any commitment.
The Ollantaytambo archaeological site
The ruins above the town are the area’s major attraction.
The archaeological complex is enormous, incorporating terraces, ceremonial structures, temples, storage areas and other remains. The site reflects the importance Ollantaytambo had during the Inca period, when its strategic location made it an important centre on routes connecting the Andes with the eastern lowlands.
The terraces rising above the town are particularly impressive.
And because you live here, you don’t have to experience the ruins as a rushed excursion between other tourist attractions.
You can visit when the weather is good, return another day, walk around different sections and gradually get to know the site.
Life beyond the ruins
It would be easy to assume that Ollantaytambo is simply a tourist attraction with houses attached.
It isn’t.
There is a genuine local community here, and outside the most heavily visited streets you’ll see ordinary daily life continuing: people going to work, children going to school, families shopping and farmers working the surrounding land.
The town has grown into a useful little centre for the surrounding communities.
You’ll find restaurants, cafés, shops, markets, accommodation and local services, although the selection is naturally much smaller than in Urubamba.
The tourism factor
This is probably the biggest consideration for anyone thinking about living in Ollantaytambo.
Tourism is everywhere.
The town is an important stop for people visiting the Sacred Valley and one of the principal places to catch the train towards Machu Picchu.
That brings obvious benefits.
There are plenty of restaurants and cafés. There is a good selection of accommodation. English is widely encountered in businesses serving tourists. And there are opportunities for residents who work in hospitality, tourism, guiding, wellness and related industries.
But tourism also has drawbacks.
Parts of the historic centre can become crowded, particularly when groups of visitors arrive. Prices in businesses aimed at tourists can be considerably higher than those in less tourist-oriented towns.
And if you want a place where nobody knows or cares about tourism, Ollantaytambo probably isn’t it.
The expat community
Ollantaytambo has an international community, but it is smaller and less prominent than those in Pisac or Urubamba.
There are foreigners who live here long-term, as well as people who own businesses, run accommodation, work remotely or have simply fallen in love with the town.
But the community isn’t necessarily the main reason people choose Ollantaytambo.
If you want a large network of expats, endless yoga classes, alternative therapies and international social events, Pisac is probably a better fit.
If you want to live somewhere beautiful and historic while being immersed in a much smaller community, Ollantaytambo may appeal much more.
Restaurants and cafés
For such a small town, Ollantaytambo has a surprisingly good selection of restaurants and cafés.
The tourism industry means that visitors have plenty of choices, ranging from traditional Peruvian food to international cuisine, vegetarian options, coffee shops and more upscale restaurants.
The scene changes frequently, so rather than giving you a fixed list of restaurants that may be outdated by the time you read this, check our current Sacred Valley restaurant recommendations.
One advantage of living here is that you can discover the places that aren’t necessarily obvious to tourists.
Getting to Machu Picchu
Living in Ollantaytambo has one enormous practical advantage: Machu Picchu is much easier to reach from here than from most other parts of the Sacred Valley. The town’s railway station is a major departure point for trains heading towards Machu Picchu.
That makes Ollantaytambo particularly attractive if you really love archeology or regularly have friends and family visiting Peru. Instead of arranging an early-morning transfer from Cusco or another part of the valley, you can simply stay overnight in Ollantaytambo and take the train from here.
The railway is also a major part of the town’s economy and atmosphere.
For some residents, it’s exciting to be so close to one of the world’s great archaeological destinations. For others, the constant flow of travellers and luggage is part of the reason they eventually prefer somewhere quieter.
Getting to Cusco
Ollantaytambo is farther from Cusco than Urubamba, Pisac or Chinchero.
The road route through Urubamba and Chinchero is the main connection, and the journey can take considerably longer depending on traffic and road conditions.
That distance matters if you need to travel frequently to Cusco for work, specialist medical care, shopping or other services.
For someone who works remotely and rarely needs the city, it may barely matter.
For someone who needs to be in Cusco several times a week, it could become frustrating.
Shopping and everyday services
This is another area where Ollantaytambo loses out to Urubamba.
You can buy everyday necessities locally, but the town doesn’t have the same range of supermarkets, shops, services and businesses that you’ll find in a larger centre.
For a major shopping trip, many residents will head to Urubamba or elsewhere in the valley.
That isn’t necessarily a problem, but it’s something to factor into your lifestyle.
Living in Ollantaytambo means accepting that convenience isn’t its greatest strength.
Its greatest strengths are history, beauty, atmosphere and location.
Housing in Ollantaytambo
Housing can be quite different here from the larger towns of the Sacred Valley.
The historic centre has traditional buildings and narrow streets, while properties outside the centre can offer more space and gardens.
However, the town’s heritage status makes property ownership and development more complicated than it may be elsewhere.
If you’re thinking about buying a property within or near the historic or archaeological areas, get professional advice about permits, heritage restrictions and what you’re legally allowed to alter. The Ministry of Culture actively protects the archaeological area, and unauthorised construction has resulted in enforcement action.
For renters, the key question is often location.
Living directly in the historic centre puts you close to restaurants and everything happening in town—but can also mean more tourist noise. A home farther out may give you considerably more peace.
The climate and altitude
Ollantaytambo sits at around 2,860 metres (9,380 feet) above sea level.
The climate is generally mild during the day when the sun is out, with cooler nights and significant temperature changes between sun and shade.
As elsewhere in the Sacred Valley, the dry and rainy seasons affect daily life.
One advantage of the altitude compared with Cusco is that many people find the lower elevation easier to handle, although everyone’s response to altitude is different.
Is Ollantaytambo good for families?
It can be, but it depends on what you’re looking for.
The small-town environment can be wonderful for families who value community, outdoor activities and a slower pace.
Children have access to the surrounding countryside, mountains and archaeological sites, although parents should also consider schooling options and whether regular trips to Urubamba or Cusco would be necessary.
Families wanting lots of organised activities and international services may find Urubamba easier.
Is Ollantaytambo good for retirees?
For the right retiree, yes.
If your idea of retirement is morning walks, beautiful scenery, historic streets, good restaurants and a small community, Ollantaytambo can be magical.
If you need frequent specialist medical care, extensive shopping or a large social network of other foreigners, you may find it limiting.
As with any smaller Sacred Valley community, it’s sensible to consider access to healthcare in Cusco and Urubamba before committing to a permanent move.
Pros of living in Ollantaytambo
- Extraordinary historic and Inca character
- One of the most beautiful and distinctive towns in the Sacred Valley
- Close to the train station for Machu Picchu
- Spectacular mountain scenery
- Plenty of restaurants and cafés for a small town
- Smaller, more intimate community
- Generally quieter than central Urubamba
- Excellent walking and hiking opportunities
- Strong sense of place and history
- Tourism creates employment and business opportunities
- Convenient base for exploring the western Sacred Valley
Cons of living in Ollantaytambo
- Smaller expat community compared with Pisac or Urubamba
- Tourism dominates much of the local economy
- Historic centre can become crowded
- Tourist-oriented prices can be high
- Fewer shops and everyday services than Urubamba
- Cusco is relatively far away
- Property within the historic area can be subject to significant restrictions
- Less nightlife and entertainment
- Transport and services can feel limited if you’re used to a larger town
- Constant tourist activity may eventually become tiring
Is Ollantaytambo a good place to live?
Ollantaytambo isn’t for everyone—and that’s part of its charm.
If you’re looking for a large expat community, modern conveniences and plenty of activities, you’d probably be happier in Urubamba or Pisac.
But if you’re looking for something genuinely special, Ollantaytambo is difficult to beat.
Imagine walking out of your house in the morning and seeing Inca stone walls, enormous agricultural terraces and mountains rising around the valley. Imagine wandering through centuries-old streets after most of the day’s visitors have left.
That is the magic of living here.
At the same time, it’s important to remember that you’re not moving into a museum. You’re moving into a working Peruvian town whose economy is heavily connected to tourism.
There will be busy days. There will be tourists dragging suitcases through the streets. There will be restaurants catering to visitors and property regulations that can make renovations complicated.
But there will also be quiet mornings, friendly neighbours, spectacular walks, excellent food and the extraordinary privilege of living somewhere with thousands of years of history woven into everyday life.
Our advice?
Don’t decide whether you could live in Ollantaytambo after spending three hours here between trains.
Stay for several days. Spend an evening after the tourists have gone. Walk through the old town early in the morning. Visit the market. Take the local transport. Explore outside the historic centre.
Then ask yourself whether you want your everyday life to be a little less convenient—but considerably more extraordinary.
For some people, the answer will be no. For others, it will be paradise.
