town, northwestern Honduras. It lies in the hot lowlands near the Ulúa River and west of Lake Yojoa. It was founded in 1761 by settlers from Gracias. Santa Bárbara is a commercial centre. The raising of livestock and the cultivation of sugarcane are the principal economic activities in the hinterland; palm hats, clothing, and furniture are made in the town. Ruins of the colonial city of Tencoa are nearby. Santa Bárbara is reached by a branch from the Inter-Oceanic Highway, and it has an airfield. Pop. (2001) 15,023.