Grazalema is a small white town with about 2000 inhabitants and is in the middle of the Sierra de Grazalema Natural Park. The town is located on a mountain that has a height of 600 to 1600 meters. It has a microclimate that gets the most rainfall in all of Spain, namely about 2200 liters per square meter per year. The main industry has been the furniture industry and the hand weaving of lambswool cloth, used for shawls and blankets. Today tourism is playing an important role in the local economy. Many tourists come to hike in the mountains and to climb them too. There are some good hotels in the area. The pinsapo is a unique Spanish fir that grows only in the area and now is the symbol of the mountains. The nearby Valley of Benamahoma generates plenty of electricity because of all of the rainfall.
The first village on this site was Lacidulia, a Roman colony. Later the Moors came and the name of the town became Ben-salama, which meant "son of Zulema". In 1485 the Christians conquered the town and gave it the name of Zagrazalema, and was given to the noble Ponce de Leon. In the 17th century it became known for its woolen shawls. Much of the town was destroyed by the French in the War for Independence. Attractions in the town are a Roman fountain, the 18th century Church of Nuestra Señora de la Aurora, and the Church of La Encarnacion, built between the 17th and 19th centuries.
The area around the town is called the Sierra de Grazalema Nature Park and the UNESCO gave it the title of a Biosphere Reserve in 1977. Visits to this park have to be arranged at the Park's office in Avenida de la Diputacion in El Bosque. Other attractions in the area are the Pileta Cave in Benaojan, the Arab castle of Zahara, and the Roman ruins of Omri. There is a wide variety of wildlife, such as Griffon vultures, golden eagles, peregrine falcons, red deer, otters, wild cats, mountain goats, and 136 bird species. This area is a heaven for nature lovers.