Somoto is the capital of the department of Madriz. Located on the border of Nicaragua near Honduras, it is 216km from the capital city of Managua. The most direct land route between Somoto and Managua is the Pan-American Highway, which can take between 2.5-6 hours depending on the mode of transportation. The name Somoto is derived from Spanish ancestors, of the Choroteganas race. The indigenous appellation "Tepecxomotl" is composed of two words: "tepec" meaning town, valley or population, and "Xomotl" which means geese or ducks. Combined, the name signifies "Hillside of the geese" or "Valley of the geese".

Somoto is considered one of the poorest municipals in the country. Some of the biggest problems encountered here are unemployment, illiteracy, and infant and child malnutrition. On top of this, Somoto is situated in the dry tropical region of the country where there exists only two seasons: the rainy or wet season and the dry season (winter and summer respectively). Without a doubt, the drought has affected the agricultural sector severely over the last couple of years, and hurricane Mitch in October of 1998 further aggravated the already difficult situation.

The city of Somoto has a population of about 16,000 people, including the far-reaching barrios. Politically, Somoto voted PLC or liberal until last year's municipal elections where the Sandinistas gained power in a large proportion of municipalities all over the country.