Ajijic is located (at 20°18"N, 103°15"W) 5046 feet above sea level in the vast central Mexican plateau that is home to the Sierra Madre mountain range. The Chapala Lake basin has a year round average temperature of about 72 degrees. The temperature ranges from a low of about 50 degrees in the winter months, to a high of about 90 degrees in summer. The rainy season begins in June and lasts until October with an average rainfall of approximately 34 inches.

The Chapala region, especially Ajijic, has become a destination for Americans and Canadians, either escaping the high cost of living north of the border, or freezing winters in Canada. These reasons, along with the agreeable climate, has increased the area's population.