Positano bites deep. It is a dream place that isn't quite real when you are there and becomes beckoningly real after you have gone. John Steinbeck. Built around a small curving bay on a steep hill overlooking the Li Galli islands, Positano is located in the heart of the Costiera Amalfitana. Once a sleepy fishing village, Positano is one of the most picturesque towns on the Amalfi coast. The typical Moorish style houses are lined up along the slopes facing the sea. Steep steps, narrow lanes, courtyards and gardens create this magical village.