The Church announced the Otavalo Ecuador Temple will be built on a 2.3-acre site at Calle Eugenio Espejo and Calle Sarance in Otavalo, Ecuador. The temple was among 17 announced by President Russell M. Nelson in April 2023.

Otavalo is located in northern Ecuador's Imbabura Province, known for its Indigenous Kichwa population and textile markets. The temple will serve Latter-day Saints in the region, which currently relies on temples in Quito and Guayaquil.