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Chiloe Island, Chile South America. The City Of Castro, Is The Capital Of The Province Of Chiloe, Located South Of Chile. On The East Coast, Is Home To Almost The Entire Population Of The Commune, In The City Of Castro (Latitude 42 ° 27'48 S, Longitude 73 ° 48'29 W) And Its Surroundings. The City Is Located On A Spit Of Land Between The Firth Of Gamboa And Tenten Estuary.