The church after which Baños is named, called the Church of the Virgin of the Holy Water, or Nuestra Señora del Agua Santa , is historically and culturally significant. It is the place where many Ecuadorians would pilgrimage in order to thank the Virgin of Holy Water for her miracles and ask her for any blessing. This impressive church is made from volcanic rock that dates from the beginning of the century; it was built with gothic architecture. Inside the basilica, tourists can see replicas on the walls of volcanic explosions as well as some of the Virgin's miracles. In addition, within the Basilica there is a museum and art gallery.

Within town, there are several language schools where it is popular to learn Spanish. There are also various places to ride horses around the town. On every bock are different tour operating companies, advertising tours to the Amazon, hiking and rafting. In town there are many lodging choices, from pensiones, residenciales and hostales to upscale hotels.

The famed hot springs, or Baños, are located literally within a short walk from town. The hot springs are intriguing colors due to its high mineral content. There are also Thermal Springs called Baños de la Virgen in town as well as El Salado, Santa Ana and Eduardo’s bath within town.

There is also a swimming pool next to Baños de la Virgen.

Nearby is also Manto de la Virgen is one of the area's famous waterfalls.