Otavalo is a city about 34 miles north of Quito, Ecuador (1 1/2 hour drive due to the mountains country). On Saturdays, the massive Otavalo market overflows from the Plaza de Ponchos and colorful textiles and crafts fill tents along streets in a third of the city. Otavaleños are famous for their weavings, everything from blankets and bags to sweaters and gloves.