Huatulco is the newest resort built by Fonatur (National Trust Fund for Tourism Development), Mexico’s government tourism development agency. It is located on the Pacific coast of the southwestern Mexican state of Oaxaca, at the foot of the southern tip of Sierra Madre del Sur Mountains, about 250 miles southwest of Acapulco. With mostly sunny days and an average annual temperature of 82F (28C), Huatulco combines comfort and contemporary luxury with a natural setting of rainforest jungle, waterfalls and pristine rivers. It is the largest ecological reserve designated by the Mexican government, making it a truly a unique tourist destination which combines a very modern resort infrastructure within a large, undeveloped natural area. Huatulco features one of Mexico 's most abundant ecosystems, and a large part of this area has been designated as a national park.

The name Huatulco comes from the Náhuatl word cuaúhtolco, meaning “the place where the wood is adored,” since legend has it that the great civilizing god Quetzalcóatl left the inhabitants of the bay and port of Santa Cruz a wooden cross. The seat of the refined Zapotec culture, the region witnessed the movement of Spanish boats and violent pirate raids. Hernán Cortés used it to distribute the produce of his farms along the coast, which turned Huatulco into an extremely active port. This attracted pirates during the second half of the 16th century, including famous Francis Drake and Thomas Cavendish, causing the local inhabitants to flee. Thereafter the place was a fishing village, until the Mexican government began developing it as a planned tourist complex in 1983.