Tarlac, municipality in the northwestern Philippines, the capital of Tarlac Province, on central Luzon Island. Located on a tributary of the Agno River, Tarlac is one of central Luzon's major trade and transportation centers. A rail line and a major north-south highway run through Tarlac between Manila, 112 km (70 mi) to the south, and Dagupan, 80 km (50 mi) to the north. The highway continues to points north, including the cities of San Carlos and Baguio and the Ilocos coast. In addition to transportation and trade, Tarlac is an agricultural processing center. The surrounding Central Plain is the Philippines' major rice-producing region and an important sugar-producing area. A large sugar milling operation and manufacturing, including pottery making, are among other economic activities. The town was founded in 1686. It was partially destroyed by Japanese forces during World War II and was recaptured by Allied forces on January 20, 1945. Population (1999) 248,489.