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Located in the Olancho region of the Republic of Honduras in Central America, the city of Gualaco lies to the west of San Esteban, to the north of Santa Maria del Real, and to the east of Guata. The city of Gualaco, which has a population of about 22,000 according to 2001 data, is located in the central western part of Olancho, the largest region of Honduras. The name Gualaco means "good land" in the indigenous language of the region. There are 10 villages connected to the city. Central de Gualaco Park is in the south of the city and Gualaco Airport is in the east of the city.