The village Algarrobo is divided into two parts, one inland and the other coastal, located 3 km away from each other. The inland village is usually referred to as "Algarrobo Pueblo" and is where the town hall is located. The coastal town is called "Algarrobo Costa". It is named after the algarrobo (carob) tree, with long, dark (when ripe) pods; carob is used as a sweetener.
The coastal part of the town is more modern than its inland partner, and boasts two magnificent beaches joined by a bridge and a seafront promenade.
Algarobo Costa was once a fishing port, but is now a busy tourist resort, with lots of apartment blocks and hotels.
There are two other municipal districts further east along the coast, called Lagos and Mezquitilla.
Algarrobo is located 8km from Velez-Malaga. Algarrobo Costa sits on on the N-340 coast road. It is jouned to Algarobo pueblo bu the A-7602. the coastal motorway A-7 sits between the two villages, leave at exit km 277.