Krasnovodsk, lake port in the Republic of Turkmenistan, in Balkan Welayat, on the eastern shore of the Caspian Sea. It is located 270 km (170 mi) east of and across the Caspian from Baku, Azerbaijan, in an area of desert that lies below sea level. Although a fort had existed on the site since 1717, Krasnovodsk was founded as a town in 1869, and it assumed importance when it became the western terminus of the Trans-Caspian Railroad in 1896. The town lacks a supply of fresh water, which must be imported or desalinized from the salty Caspian Sea. Krasnovodsk is an important gateway to central Asia and is a center for the import and export of a variety of products. Population (1991) 59,500.