San Felipe is part of the Municipality of Mexicali, Baja California, and it is 240 kilometers (149 Miles) south of the City of Mexicali. It neighbors North and East with the Gulf of California or Sea of Cortés and the State of Sonora; Southwest with the municipality of Ensenada. Land access to San Felipe is through Federal Highways # 5 from Mexicali and # 3 from Ensenada, both in good condition.

San Felipe is a warm friendly town with an old fishing tradition that has developed a very important tourist industry in the last 40 years or so.
The natural beauty of this place, its’ beautiful sandy beaches with warm waters during summer and a mild winter, attract people from northern harsher climates. Also, the constant northwest wind and clear skies, make it a perfect location for sailing and other sea sports.

The mainstay of San Felipe's economy are tourism and commerce. There are also fishing cooperatives that produce mainly shrimp and a large variety of fish. There is also a cannery. San Felipe’s port is for cargo and mostly services the local shrimp-fleet and recreational crafts. The dock is 127 meters (417 feet) long and 3.5 meters (11.5 feet) deep.

San Felipe has its own airport operated by the State Government and it is an international facility. It is located 12 kilometers (7.5 miles) south of town and it is accessed by a paved road.