Castro is the capital of Chiloe, a small island off the Chilean coast in the Pacific Ocean. The people here are known for their cordiality and hospitality. All of Chiloe's towns are by the sea.
The colourful houses built on stilts and small log cabins on the Fjord coast are typical of Castro. The houses, built on stilts, which are called "Palafitos", are situated in the tidal area at the coast; their wooden stilts are flooded daily by the rising sea water. The city is also known for its folk music and its woollen handicrafts.