- The setting couldn't be more spectacular! El Castillo is located in the town of Xilitla, in the state of San Luis Potosi. Xilitla is a lively village nestled into northern Mexico's Sierra Madre mountains, in a peaceful, semi-tropical mountain valley that is teaming with wildlife and magnificent sights. This little Shangri-la has been an inspiration to many who have happened upon it.www.junglegossip.com/castillo.html