city, southern archipelagic Chile, 50 mi (80 km) inland of Puerto Aisén and 25 mi (40 km) west of the Argentine border. Founded in 1912 by a small group of German colonists, it is situated among grassy steppes between the Coihaique and Simpson rivers, in a densely forested and extremely wet region of Patagonian Chile (rainfall reaches 58 in. 【1,485 mm】 annually). Although wheat, barley, oats, potatoes, and fruit have long been produced in the immediate area, some of the city's growth is attributable to a pastoral industry, primarily cattle and sheep. In the early 1980s the city became an economic centre, providing commercial and financial services and supporting light industry. It is linked by a gravel road, the Southern Highway (Carretera Austral), to Puerto Montt, Quellón, and Puerto Chacabuco. Pop. (2002) 44,850.