The surface circulation around the entrance to the Gulf of California is described from satellite altimetry supported by 10 conductivity‐temperature‐depth (CTD) surveys. The sea surface height calculated from the 1/4° World Ocean Database 2001 climatology plus the Archiving, Validation, and Interpretation of Satellite Oceanographic altimeter data (October 1992 to January 2008) were RMS adjusted to the dynamic height calculated from CTD data; the 27.0 kg m−3 isopycnal provided the optimum reference. In the mean, the surface circulation shows a branch of the California Current heading landward toward the Gulf of California entrance, where it splits into two subbranches; these are separated by a cyclonic circulation attached to the coast south of Cabo Corrientes. This feature is produced by Sverdrup dynamics and is the first observational indication that the Mexican Coastal Current is generated locally by the wind stress curl, as previously suggested by numerical models. The global variance of the surface circulation can be separated into seasonal (explained variance 35%), interannual (explained variance 35%), and mesoscale (explained variance 30%) components. The seasonal signal, which shows the interplay of the poleward Mexican Coastal Current and the equatorward branch of the California Current, can be explained by a long Rossby wave model forced by the annual wind and by radiation from the coast. The interannual component is dominated by the El Niño‐Southern Oscillation, which induces in the gulf entrance an anticyclonic (cyclonic) circulation during El Niño (La Niña); this circulation includes a poleward‐flowing branch (during El Niño) parallel to the Pacific coast of the Baja California peninsula. The mesoscale variability is caused by intense eddy activity.