The houses on the hillside are on the north side of the valley of the River Cuale which comes down out of the mountains and flows to the bay through Puerta Vallarta. It is called Gringo Gulch because during the filming of "The Night of the Iguana" in 1964, a film that put Puerto Vallarta on the map, many of the stars such as Richard Burton, Liz Taylor, and director John Huston bought houses in this area. The church in the distance is this church, the church of Our Lady of Guadalupe. The town of Puerto Vallarta is built at the base of the Sierra Madre mountains. The mountains in the distance are the Sierra Vallejo mountains in the state of Nayarit where I live.
This picture was taken from an old condominium building in the hills above Playa Muertos named "La Alborada" which means "the dawn".