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Gualala (formerly, Guadala , Walhalla , and Wallala ) is an unincorporated community in Mendocino County in the U.S. state of California . It is located north of The Sea Ranch and south of Point Arena, California . Gualala shares its southern border with the southern border of Mendocino County. It is located on the Pacific coast at the mouth of the Gualala River , on State Route 1 . It serves as a commercial center for the surrounding area. Gualala was once a logging town, but tourism is now its central economic activity.