Founded in 1567, Castro is Chile's third-oldest city. Its history has been one of destruction, with three fires and three earthquakes laying waste to the city over four centuries. The most recent disaster was in 1960, when a tidal wave caused by an earthquake on the mainland engulfed the city.
Castro's future as Isla Grande's governmental and commercial center looked promising after the 1598 Mapuche rebellion on the mainland drove the Spaniards to Chiloé, but then Dutch pirates sacked the city in 1600. Many of Castro's residents fled to the safety of more isolated parts of the island. It wasn't until 1982 that the city finally became Chiloé's administrative capital.
Next to its wooden churches, palafitos are the best-known architectural symbol of Chiloé. These shingled houses are all along the island's coast. Avenida Pedro Montt, which becomes a coastal highway as it leads out of town, is the best place to see palafitos in Castro. Many of these ramshackle structures have been turned into restaurants and artisan markets.
Situated in the central part of the island, Castro is only about one hour's drive from Ancud along Ruta 5, the Pan-American Highway. For a more interesting route, take the coastal, unpaved road to Castro via Quemchi. That will take twice as long, but you pass by numerous tourist sites. There is regular and frequent bus service from the bus terminal in Puerto Montt to Castro. It's about 4 hours. Catamaranes del Sur provides twice-weekly catamaran service between Castro and mainland Chaitén, with continuing service to Puerto Montt.