Elgeta is a small, recently industrialized village situated at an altitude of 473 m on a low mountain range that separates the provinces of Guipúzcoa and Vizcaya. The western municipal boundaries of Elgeta are contiguous with the provincial boundaries of Vizcaya, but the village is under the administration of Guipúzcoa. The villagers see themselves as guipúzcoanos and their history and traditions as closely tied to the rest of the province.

The compact, urbanized village nucleus presents a sharp contrast to the dispersed farmsteads dotting the surrounding countryside. But both the village centre and the farmsteads are hemmed in by forests of low quality pine which expand each year in size as the farms are progressively abandoned and pines planted on land once used for animal pasturage and crops.

The central plaza of the village is a crossroads which connects Elgeta on all four sides to the outside world. To the north with pine forests on both sides, a curving, pot-holed road descends down to the town of Eibar 9 km away. Eibar is heavily industrialized, has 38,206 inhabitants (1973) and historically has been a major centre for socialism in the Basque provinces. The town has had a significant influence on both Elgeta's economic and political development. To the south 10 km away along another curving road also through pine forests is the town of Mondragon (pop. 23,050 in 1973). Mondragon is famous in the Basque provinces for its industrial cooperatives and in recent years for its ardent nationalist activity.