This study of saltmaking in coastal Michoacan underscores the value of ethnoarchaeology as a tool for assessing ancient saltmaking activities. Common salt (sodium chloride) was a strategic resource of great importance for Mesoamerica during pre-Hispanic and Colonial times. This study deals with salt production in La Placita and neighboring areas of coastal Michoacan and Colima, in western Mexico. The primary goals are to document traditional saltmaking techniques—in particular, the material culture, organization of work, ecological setting, and levels of production observed in the study area, as well as the importance of salt manufacture and trade for the area's economy and culture over time. Ethnographic observations together with ethnohistorical and archaeological data shed light on the pre-Hispanic production, use, and commerce of salt in the coastal area of Michoacan, one of the least studied regions in Mesoamerica. There are three types of sites in the study area: (1) sites where salt is currently being produced; (2) abandoned sites where salt production was carried out until some fifty years ago; and (3) archaeological sites where salt may have been produced and/or distributed in ancient times. The material evidence of salt production consists of: (1) terreros, or mounds of leached soil; (2) eras, or solar evaporation pans; and (3) specialized pottery types. Finally, this paper uses archaeological and historical evidence, as well as oral traditions, to discuss ancient salt exchange and trade networks.