San Ignacio sits in a valley of seven hills on the west bank of the Macal River. Also called "Cayo", San Ignacio has a population of 6,000 people and is the administrative center for the Cayo District, relying on cattle ranching, tourism and small businesses. San Ignacio offers a relaxing atmosphere and lively nightlife, and is a good base for
exploring the Cayo District's outdoor attractions and Mayan ruins.
Sandwiched between the confluence of the Mopal and Macal Rivers, San Ignacio was first known as El Cayo, Spanish for "The Island". During the time when river transportation was the norm, San Ignacio was a major collecting point for mahogany logs and chicle, a gum-like substance tapped from sapodilla trees. Boats carrying the mahogany and chicle would pass through the town, down the rivers en route to the coast.
After the decline in logging and chicle tapping, San Ignacio's industrial focus shifted to agriculture and cattle farming. Today, the town has a diverse cultural makeup including Creoles, Mestizos, Mopans, Maya, Garifuna, Guatemalans and Sri Lankans. Spanish is widely spoken. Ecotourism is becoming one of San Ignacio's main industries, and several tour operators offering a variety of excursions are based in San Ignacio.