Nuevo Arenal is located on the north shore of Lake Arenal. The former village of Arenal near the La Fortuna area was inundated in 1978 with the formation of the artificial Lake Arenal. Nuevo Arenal was a government project to relocate the displaced people. Nuevo Arenal is located about a one-hour drive northwest from the original village along a beautiful paved lakeside road that goes from La Fortuna to Tilarán.