The picturesque Kapsali is located in the south, near the town of Chora. It was the first port of Kithera before Agia Pelagia and Diakofti. It is built around two bays separated by a small peninsula where the church of Agios Georgios is located.
The first bay is called Piso Gialos and operates mainly as a harbor for boats of local fishermen. The other bay is where the main beach lies and just on top of it you will find taverns, cafe bars, restaurants and apartments for accommodation. In the wooded hillside above Kapsali there are also many hotels and apartments.
Though Kapsali is a tourist destination, it has kept its picturesque with its white small houses with blue shutters. It is considered the most cosmopolitan area on the island. An official anchorage marina also operates for yachts and small cruise ships. The beautiful setting complements the existence of the islet Chitra. Kapsali has so many topographic landmarks (the islet Chitra, the two bays, the lighthouse, the amphitheatric morphology of the area and the castle of Chora) that all together bind up harmonically giving this incredible idyllic landscape.
Kapsali has two structures that were built during the British rule, the quarantine station (lazaretto) and the Αqueduct (depozito). On the mountain that lies above the village is the church of Agios Ioannis Egkremno inside a cave. Tradition says that here Agios Ioannis (St.John) started the writing of the Apocalypse. The church is now younger and built over the old one.
Studies show that Kapsali was inhabited since the 16th century AD. The name of the village is not clearly known we it comes from. According to one version the name comes from the verb kapsalizo (parch), perhaps because of the high temperatures prevailing in the region. Kapsali was also called Porto Dolphin during the 18th century. Until the mid 20th century, the settlement was a small fishing village. But when the jetty was constructed in the decade of 1960, it became the first organized port and thus began the residential and tourist development of the settlement.