The economic centre of nearby Olite, Tafalla is situated on the shores of the river Cidacos in the midst of a large stretch of agricultural land and cereal fields and vineyards. This locality marks the start of the Navarrese floor plain, close to the last Pyrenean foothills.
From the 12th to the 14th centuries, Tafalla experienced a period of expansion that was cut short by the Black Death. To alleviate the effects of this crisis, King Carlos III declared it a free town and raised the status of all its inhabitants to free citizens. At around this time a royal palace was built, a copy of the palace of Olite, the remains of which disappeared at the end of the last century. In the centre of the village the old quarter with its mediaeval arrangement can still be clearly discerned, situated in the higher area between the two main churches and the later extensions. The Plaza Nueva (new square), built between 1856 and 1859, acts as the town's commercial and administrative centre. The churches of Santa María and San Pedro can also be visited. The former is notable for its main altarpiece and tabernacle, both being the work of Juan de Antxieta, the choir seating, which dates from 1760 and the miraculous and unfinished image of San Sebastián, patron saint of the town, made from polychrome worked stone in the 15th century, whilst the latter is notable due to it being the oldest church in Tafalla, built in 1157.
