Peñuelas (Spanish pronunciation: [peˈɲwelas]) is a municipality in Puerto Rico located in the southern coast of the island, south of Adjuntas, east of Guayanilla, west of Ponce and north of the Caribbean Sea. Peñuelas is spread over 12 wards and Peñuelas Pueblo (the downtown area and the administrative center of the city). It is part of the Yauco Metropolitan Statistical Area. Peñuelas is known as "La Capital del Güiro" (The Güiro Capital) and "El Valle de los Flamboyanes" (The Valley of the Poinciana Trees). Penuelas has about 20,000 inhabitants.
In 1754, a group of workers had settled over the bay of Tallaboa. Later gradually retreated deeper into the valley, heading towards the most fertile land which would then be part of the town of Peñuelas. For the year 1788, approximately 80 families inhabiting the valley, which focused mainly on agriculture and livestock. Peñuelas Township was founded August 25, 1793 by Diego de Alvarado. In 1874, the town had been developed and already had 9.206 inhabitants, according to a census of that year.