The sheet music I have of it includes an English translation, which goes along the lines of
"In Macarenita, he gave me glances",
and describes two people falling in love. However, my understanding of the Spanish, of which some lines (although I cannot find the lyrics online) are
"en la Macarenita, me dieron agua, agua más fría que la nieve en una taya".
Unless I am mis-translating the lyrics badly, the song literally means
"in the Macarenita, they gave me water, water colder than snow".
Is "agua" a euphemism for looking at someone? Is the song just not in Spanish and in another, very similar language? Or is the whole song just a joke?
Sheet music (with lyrics and translations):