Castro is located 164 kms. from Puerto Montt, and 1,187 kms. from Santiago. The main economic activity is its fishing industry, also complemented by its subsistence agriculture industry. Castro was funded on the 12th February 1567 by Captain Martín Ruiz de Gamboa which makes it the third oldest city in Chile, after Santiago and La Serena.

Important to note is its distinguished architecture as well as the construction of stilt houses over the sea, called palafitos. Also worth noting is the San Francisco Church, declared a national monument in 1910, which is completely built from local wood.

The annual festival which takes place during the third week of February is of great interest and during which cultural customs can be viewed.