I have finally found the village of Meligala. It is actually the village of Roussapidia and lies in the mountains south of Neapoli (where else?).
You can find more information and Google Street Views and Maps on the Episode 6 page.
‘Meligala’ found!
Who Pays The Ferryman? Locations Page
Delving into the locations from the 1977 BBC TV series "Who Pays the Ferryman?"
Who Pays The Ferryman? Locations Page 