diff --git a/homeassistant/components/ipma/__init__.py b/homeassistant/components/ipma/__init__.py
index 4d675e8cc1d..315362247a2 100644
--- a/homeassistant/components/ipma/__init__.py
+++ b/homeassistant/components/ipma/__init__.py
@@ -1,19 +1,61 @@
 """Component for the Portuguese weather service - IPMA."""
+import logging
+
+import async_timeout
+from pyipma import IPMAException
+from pyipma.api import IPMA_API
+from pyipma.location import Location
+
 from homeassistant.config_entries import ConfigEntry
-from homeassistant.const import Platform
+from homeassistant.const import CONF_LATITUDE, CONF_LONGITUDE, Platform
 from homeassistant.core import HomeAssistant
+from homeassistant.exceptions import ConfigEntryNotReady
+from homeassistant.helpers.aiohttp_client import async_get_clientsession
 
 from .config_flow import IpmaFlowHandler  # noqa: F401
-from .const import DOMAIN  # noqa: F401
+from .const import DATA_API, DATA_LOCATION, DOMAIN
 
 DEFAULT_NAME = "ipma"
 
 PLATFORMS = [Platform.WEATHER]
 
+_LOGGER = logging.getLogger(__name__)
 
-async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
+
+async def async_get_api(hass):
+    """Get the pyipma api object."""
+    websession = async_get_clientsession(hass)
+    return IPMA_API(websession)
+
+
+async def async_setup_entry(hass: HomeAssistant, config_entry: ConfigEntry) -> bool:
     """Set up IPMA station as config entry."""
-    await hass.config_entries.async_forward_entry_setups(entry, PLATFORMS)
+
+    latitude = config_entry.data[CONF_LATITUDE]
+    longitude = config_entry.data[CONF_LONGITUDE]
+
+    api = await async_get_api(hass)
+    try:
+        async with async_timeout.timeout(30):
+            location = await Location.get(api, float(latitude), float(longitude))
+
+        _LOGGER.debug(
+            "Initializing for coordinates %s, %s -> station %s (%d, %d)",
+            latitude,
+            longitude,
+            location.station,
+            location.id_station,
+            location.global_id_local,
+        )
+    except IPMAException as err:
+        raise ConfigEntryNotReady(
+            f"Could not get location for ({latitude},{longitude})"
+        ) from err
+
+    hass.data.setdefault(DOMAIN, {})
+    hass.data[DOMAIN][config_entry.entry_id] = {DATA_API: api, DATA_LOCATION: location}
+
+    await hass.config_entries.async_forward_entry_setups(config_entry, PLATFORMS)
     return True
 
 
diff --git a/homeassistant/components/ipma/const.py b/homeassistant/components/ipma/const.py
index 47434d7f76b..60c8115a5c4 100644
--- a/homeassistant/components/ipma/const.py
+++ b/homeassistant/components/ipma/const.py
@@ -6,3 +6,6 @@ DOMAIN = "ipma"
 HOME_LOCATION_NAME = "Home"
 
 ENTITY_ID_SENSOR_FORMAT_HOME = f"{WEATHER_DOMAIN}.ipma_{HOME_LOCATION_NAME}"
+
+DATA_LOCATION = "location"
+DATA_API = "api"
diff --git a/homeassistant/components/ipma/manifest.json b/homeassistant/components/ipma/manifest.json
index a391b24e3b4..23558600373 100644
--- a/homeassistant/components/ipma/manifest.json
+++ b/homeassistant/components/ipma/manifest.json
@@ -3,7 +3,7 @@
   "name": "Instituto Portugu\u00eas do Mar e Atmosfera (IPMA)",
   "config_flow": true,
   "documentation": "https://www.home-assistant.io/integrations/ipma",
-  "requirements": ["pyipma==3.0.2"],
+  "requirements": ["pyipma==3.0.4"],
   "codeowners": ["@dgomes", "@abmantis"],
   "iot_class": "cloud_polling",
   "loggers": ["geopy", "pyipma"]
diff --git a/homeassistant/components/ipma/weather.py b/homeassistant/components/ipma/weather.py
index d20e5cb2f21..a0fe5b235b3 100644
--- a/homeassistant/components/ipma/weather.py
+++ b/homeassistant/components/ipma/weather.py
@@ -48,11 +48,12 @@ from homeassistant.const import (
 )
 from homeassistant.core import HomeAssistant, callback
 from homeassistant.helpers import config_validation as cv, entity_registry
-from homeassistant.helpers.aiohttp_client import async_get_clientsession
 from homeassistant.helpers.entity_platform import AddEntitiesCallback
 from homeassistant.helpers.sun import is_up
 from homeassistant.util import Throttle
 
+from .const import DATA_API, DATA_LOCATION, DOMAIN
+
 _LOGGER = logging.getLogger(__name__)
 
 ATTRIBUTION = "Instituto Português do Mar e Atmosfera"
@@ -95,13 +96,10 @@ async def async_setup_entry(
     async_add_entities: AddEntitiesCallback,
 ) -> None:
     """Add a weather entity from a config_entry."""
-    latitude = config_entry.data[CONF_LATITUDE]
-    longitude = config_entry.data[CONF_LONGITUDE]
+    api = hass.data[DOMAIN][config_entry.entry_id][DATA_API]
+    location = hass.data[DOMAIN][config_entry.entry_id][DATA_LOCATION]
     mode = config_entry.data[CONF_MODE]
 
-    api = await async_get_api(hass)
-    location = await async_get_location(hass, api, latitude, longitude)
-
     # Migrate old unique_id
     @callback
     def _async_migrator(entity_entry: entity_registry.RegistryEntry):
@@ -127,29 +125,6 @@ async def async_setup_entry(
     async_add_entities([IPMAWeather(location, api, config_entry.data)], True)
 
 
-async def async_get_api(hass):
-    """Get the pyipma api object."""
-    websession = async_get_clientsession(hass)
-    return IPMA_API(websession)
-
-
-async def async_get_location(hass, api, latitude, longitude):
-    """Retrieve pyipma location, location name to be used as the entity name."""
-    async with async_timeout.timeout(30):
-        location = await Location.get(api, float(latitude), float(longitude))
-
-    _LOGGER.debug(
-        "Initializing for coordinates %s, %s -> station %s (%d, %d)",
-        latitude,
-        longitude,
-        location.station,
-        location.id_station,
-        location.global_id_local,
-    )
-
-    return location
-
-
 class IPMAWeather(WeatherEntity):
     """Representation of a weather condition."""
 
diff --git a/requirements_all.txt b/requirements_all.txt
index fc3fd2a0f1f..8a87ad1cc6a 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -1614,7 +1614,7 @@ pyinsteon==1.2.0
 pyintesishome==1.8.0
 
 # homeassistant.components.ipma
-pyipma==3.0.2
+pyipma==3.0.4
 
 # homeassistant.components.ipp
 pyipp==0.11.0
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index ece00d7d630..e83a56b8a28 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -1127,7 +1127,7 @@ pyicloud==1.0.0
 pyinsteon==1.2.0
 
 # homeassistant.components.ipma
-pyipma==3.0.2
+pyipma==3.0.4
 
 # homeassistant.components.ipp
 pyipp==0.11.0
diff --git a/tests/components/ipma/test_config_flow.py b/tests/components/ipma/test_config_flow.py
index c8d53f95a4a..0c17cbe7f4b 100644
--- a/tests/components/ipma/test_config_flow.py
+++ b/tests/components/ipma/test_config_flow.py
@@ -168,7 +168,7 @@ async def test_config_entry_migration(hass):
     )
 
     with patch(
-        "homeassistant.components.ipma.weather.async_get_location",
+        "pyipma.location.Location.get",
         return_value=MockLocation(),
     ):
         assert await async_setup_component(hass, DOMAIN, {})
diff --git a/tests/components/ipma/test_weather.py b/tests/components/ipma/test_weather.py
index 942b9654895..e129216730d 100644
--- a/tests/components/ipma/test_weather.py
+++ b/tests/components/ipma/test_weather.py
@@ -19,7 +19,6 @@ from homeassistant.components.weather import (
     ATTR_WEATHER_TEMPERATURE,
     ATTR_WEATHER_WIND_BEARING,
     ATTR_WEATHER_WIND_SPEED,
-    DOMAIN as WEATHER_DOMAIN,
 )
 from homeassistant.const import STATE_UNKNOWN
 
@@ -181,7 +180,8 @@ async def test_setup_config_flow(hass):
         return_value=MockLocation(),
     ):
         entry = MockConfigEntry(domain="ipma", data=TEST_CONFIG)
-        await hass.config_entries.async_forward_entry_setup(entry, WEATHER_DOMAIN)
+        entry.add_to_hass(hass)
+        await hass.config_entries.async_setup(entry.entry_id)
         await hass.async_block_till_done()
 
     state = hass.states.get("weather.hometown")
@@ -203,7 +203,8 @@ async def test_daily_forecast(hass):
         return_value=MockLocation(),
     ):
         entry = MockConfigEntry(domain="ipma", data=TEST_CONFIG)
-        await hass.config_entries.async_forward_entry_setup(entry, WEATHER_DOMAIN)
+        entry.add_to_hass(hass)
+        await hass.config_entries.async_setup(entry.entry_id)
         await hass.async_block_till_done()
 
     state = hass.states.get("weather.hometown")
@@ -227,7 +228,8 @@ async def test_hourly_forecast(hass):
         return_value=MockLocation(),
     ):
         entry = MockConfigEntry(domain="ipma", data=TEST_CONFIG_HOURLY)
-        await hass.config_entries.async_forward_entry_setup(entry, WEATHER_DOMAIN)
+        entry.add_to_hass(hass)
+        await hass.config_entries.async_setup(entry.entry_id)
         await hass.async_block_till_done()
 
     state = hass.states.get("weather.hometown")
@@ -248,7 +250,8 @@ async def test_failed_get_observation_forecast(hass):
         return_value=MockBadLocation(),
     ):
         entry = MockConfigEntry(domain="ipma", data=TEST_CONFIG)
-        await hass.config_entries.async_forward_entry_setup(entry, WEATHER_DOMAIN)
+        entry.add_to_hass(hass)
+        await hass.config_entries.async_setup(entry.entry_id)
         await hass.async_block_till_done()
 
     state = hass.states.get("weather.hometown")