As the only standing fully preserved Inca Town in all of Perú, the town of Ollantaytambo is an important national heritage site.
The word Ollantay has its roots in the Aymara (ulla nta wi) for "place that looks downwards," while tambo comes from the Quechua tampu, meaning "lodging and rest-stop for weary travelers." In one popular myth, Ollantaytambo is held to be the birthplace of the Incan people.
However, most hold that Ollantaytambo was named after Ollantay, the Incan General whose military prowess helped to extend the borders of the Incan empire northwards and southwards. He is famous for having asked Inca Pachacutec for his daughter´s hand in marriage. Being summarily denied the honor of marrying his love, Cusi Coyllor, due to his lower social origins, the indignant Ollantay rebelled against his ruler and was thrown in prison. A play written in the 16th century dramatized their tale of tragic love.
Militarily, Ollantaytambo is celebrated as the outpost of the most victorious defeat of the Spanish conquista. Manco Inca retreated with his troops here from Sascsayhuamán in 1537.
The fortress of Ollantaytambo was important to the Incan defense against the conquistadores. It was originally constructed as a fortification against the amazonian Antis (generic term used for the indigenous Peruvians of the jungle). However, the discovery of remains of ritual baths and a Sun temple, archaeologists are questioning the defense theory. Historians also believe that Ollantaytambo may have held even more significance than Machu Picchu to the Incan Empire.
Today, Ollantaytambo serves as a popular transportation hub for getting to and from Aguas Calientes (at the base of Machu Picchu) by train.