Ancud was founded in 1767 in order to protect its sea traffic to the south with forts and batteries. The city became one of the most formidable bastions in the southern Pacific, and the political and military capital of the region.

In 1912, the railroad from Santiago to Puerto Montt was completed, joining the South to the macro-economic and cultural center of the country. Ancud became an important center for commercial shipping, but it slowly began to decline, losing its status as an international port.

In 1982, the capital of the Province was moved to Castro. But in spite of everything, Ancud still has its charms, with magnificent examples of Chilote architecture with typical wooden shakes, combined with modern buildings surrounded by narrow streets, promenades, and squares where you can purchase typical examples of local handicrafts and other products.