Peñamiller is a town located within the Peñamiller Municipality in the Mexican state of Querétaro. Situated on the southwest side of the Sierra Gorda region, approximately eighty percent of its territory falls within the Sierra Gorda Biosphere of Querétaro.
The geography of the area is primarily arid due to high mountains that block moisture from the Gulf of Mexico, resulting in a "semi-desert" landscape characterized by cacti. However, a small portion on the eastern side features temperate forests and bodies of water associated with the Extoraz River, where fish are raised.
The name of the town and municipality originated from a mountain known as El Picacho. The founder, José de Escandón, associated the site with Peña Mellera in Spain, leading to the eventual evolution of the name into Peñamiller.