The municipality of Olhão has a total area of 130.9 km² and 42,272 inhabitants. The city itself has a population of 24,876. Olhão includes a mainland part and the Armona island. It borders the municipality of Tavira in the north and the east, by the municipality of Faro in the west, the municipality of São Brás de Alportel in the northeast and the Atlantic Ocean in the south.