If you're looking for an idyllic rural location on Madeira, in the heart of Madeira Island's dramatic landscapes, then Serra de Agua is for you.
Situated inland, up from Ribeira Brava, the village of Serra de Agua (meaning sawmill) has a small cluster of charming accommodations. Walking opportunities are numerous in the area, and you're conveniently close to the Boca da Encumeada miradour/lookout and deep in Madeira's most stunning river valley.
Madeira's north/south connecting highway up from Ribeira Brava over the Encumeada pass and down to Sao Vicente is certainly one of Madeira's most scenic drives, taking you into the heart of the stunning volcanically formed landscape.
Serra de Agua makes a superb base for activity holidays and walking/hiking holidays on Madeira, exploring this central Serra and river valley territory.
Serra de Agua is a small Madeira rural village, and numerous walks and trails branch out from here. It's a popular base on Madeira for walkers. (see Madeia Sunflower books weblink right for more details on walking holidays in Madeira).
A popular walk is from Encumeada to Boca da Corrida, which takes in several peaks. Madeira Explorers offer this guided walk and more walks on Madeira. Check their weblink right for details. If there's one mountain walk you should do whilst on Madeira, then it's this one from Encumeada to Corrida.