Castelló de Rugat is a municipality in the comarca of Vall d'Albaida, in the Valencian Community of eastern Spain. It is located in the province of Valencia, within the inland mountainous area of the region rather than on the coast.
The town lies in the Vall d'Albaida, a valley comarca in the northern part of the province of Valencia. Like other municipalities in the comarca, it is part of the Valencian Community, an autonomous community on Spain's eastern Mediterranean side.
Castelló de Rugat is one of the several municipalities that make up the Vall d'Albaida comarca. The area is known within the Valencian Community as an inland district centred on the town of Ontinyent, and Castelló de Rugat forms part of this administrative and geographic grouping.