Puerto Vallarta is a Mexican beach resort city located on the Pacific Oceans Bahía de Banderas in the Mexican state of Jalisco. It is the second largest urban agglomeration in the state after the Guadalajara Metropolitan Area. The city is located at 20°40′N 105°16′W / 20.667°N 105.267°W, and the municipality has an area of 681 km². Puerto Vallarta is situated between the Sierra Madre Mountains and the golden sandy beaches and clear waters of the Pacific Ocean. It was once a small fishing village on Banderas Bay called Las Peñas, only claiming its city status in 1968.