Aguas Calientes also called the city of Machu Picchu , is a Peruvian locality located in the Cusco Department , Urubamba Province , Machu Picchu District. Its origin dates back to 1901, when the railway would have united the people of Cusco with those of Santa Ana. This post would become the center of operations for the project's heavy machinery and equipment, around which the railway workers settled. Aguas Calientes is located in the middle of abundant vegetation and a range of mountains that form a valley.