The Punta Banda Peninsula is located on the west coast of Mexico near Ensenada and is believed to have formed as a direct result of right-lateral movement along the Agua Blanca fault system. Geothermal activity along the southwest shore at Bahia Papelote includes multiple hot water emissions and a single gas emission. 'This study of the geothermal area involves the use of two geophysical techniques: a. Very Low Frequency (V.L.F.) electromagnetic survey and seismic refraction. The V.L.F. method was used first as a reconnaissance technique to delinea the faults in the study area. Next, refraction surveys were made along the same lines where the V.L.F method indicated faults. Both techniques showed four faults (in the same areas). In addition to the right-lateral separation found in previous studies, these faults were found to have a reverse separation and a throw of 22-150 feet. Refraction profiles seldom reached the basement. However, offset of the layers above the basement indicates more recent faulting. Finally, the Punta Banda geothermal area was found to be at the intersection of two of these cross faults.