Quarteira is a coastal civil parish, located along the southern extent of the Algarve fronting Albufeira Municipality to the west (in the parish of Olhos de Água). In addition, the local area authority is bordered in the east by Almancil, northeast by São Clemente, north by São Sebastião and Boliqueime.

From the Atlantic coast, the frontier with its neighbours extends northwest along the Ribeira de Algibre, before following the M526 municipal roadway to the Estrada Nacional EN125 in Maritenda. From here, the border travels southeast along the EN125 until just after the N396 motorway, where it then divides along a ravine southwest towards the Atlantic Ocean, alongside the Royal Golf Course. The coast includes 5.5 kilometres (3.4 mi) of normally-classified Blue Flag beach.

The settlement of the region dates back to, at least, the Roman occupation of the Iberian Peninsula (at one time confused with the village of Carteia). There are still other authors who suggest that settlement of the region may have remoted to the period of Phoenician or Carthaginian traders.

For several centuries, Quarteira was a modest fishing village, situated on the edge of a 3 kilometres (1.9 mi) beach, encircled by pines. King Denis authorized a foral (charter) for the settlement on 15 November 1297.

In the 15th century, King John I of Portugal ordered the first cultivation of sugar cane in continental Portugal.

Created in 1916, the civil parish quickly became known for its beaches, fishing and its forests of pine.

Quarteira was elevated to the status of cidade (city) on 13 May 1999.