Alhama lies in the Valley of the river Guadalentín at the foot of the Espuña and La Muela ranges. Defence towers, ruined town walls, renaissance-style palaces, and mansions of the former nobility are all part of the legacy of the valley's varied history.
To the Romans and Moors this town meant the thermal springs flowing off the mountain. This is, in fact, what gives the town its name, Al-hama, meaning hot springs in Arabic. There are also the ruins of the older Roman baths that demonstrate the great age of the utilization of the springs in the area. It was the Roman baths established in the 1st century AD that were further developed and used into the Islamic period.
On the rocky outcrop overlooking the town stands a 12th-century Arab castle around which the town eventually grew. A walk through the town reveals a surprisingly rich range of colours used in the façades of the houses; red, ochres, violets and blues all add to the pleasantness of a stroll through the town.
Walking and cycling enthusiasts will find the gateway to Sierra Espuña in Alhama. In addition to hillwalking and climbing, the park offers other points of interest such as the 16th- and 17th -century snow cellars.