Olivenza is located on the left (east) bank of the Guadiana river, an equal distance of 24 kms south of Elvas in Portugal and Badajoz in Spain. Olivenza or Olivença (Portuguese) is situated on a disputed section of the border between Portugal and Spain. The town is claimed by both countries and is currently administered by Spain. As Olivença, the town was under Portuguese sovereignty between 1297 and 1801 when it was ceded to Spain under the Treaty of Badajoz. In spite of the territorial dispute between Portugal and Spain, the issue has not been a sensitive matter in the relations between these two countries.