The citizens of Moraleda de Zafayona conserve in their oldest neighbourhood the tradition to live in houses-cave. Located in the slope of a declivity that descends towards the river bed of the Cacín river, this neighbourhood maintains still its structure as Madoz described it in the middle of the last century: "In the mentioned hill are the 80 caves that serve as shelter to the neighbours, being constructed in its base some houses".
The modern neighbourhood, which was built with the forced reconstruction of the town after the earthquake in 1884, expands from the hill mentioned by Madoz towards the so called field of Zafayona.
The main economic activity is the agriculture, being the vegetables, olives, cereal and food for the cattle the main cultivation.
In the Cerro de la Mora, within the Moraleda de Zafayona district remains that testify the presence of an Iberian town in this area 3,000 years ago have been found. They have also been found vestiges of Romans and Visigoths, and some historians maintain the idea that the mythical civilization of the Tartessos also occupied these land. The present settlement was born in the Muslim period as a settlement that lives on the silk industry. Thus, its name could derive from the great amount of white mulberries that it had. With the Christianization campaign that the Catholic Kings culminated in 1492, Moraleda de Zafayona passed to depend of Loja for some time. In 1568 took place the revolt of the Moorish in the Kingdom of Granada. Once the rebellion was repressed, the Moorish were expelled from all the towns. Years later they would repopulate the area with settlers coming from other regions.
Moraleda is a place where they elaborate hornazos, good stews and Spanish stews. Among its homemade sausages the salchichones, longanizas and black puddings stand out. And among its desserts are the cakes, the twisted rolls of piñonates, the pestiños and torrijas. One of the most typical recipes is ajoblanco with black pudding.