Osorno, city in south central Chile, capital of Osorno Province, at the confluence of the Rahue and Damas rivers, in the heart of the lake district. A road hub on the main railroad line, it is a tourist center and gateway to the numerous lake and mountain resorts to the east and southeast and to the Argentine national parks across the Andes Mountains. Called the Pearl of the South, Osorno is a trading center of agricultural valleys in which wheat, oats, livestock, and timber are raised. Industries in the city include meat processing, flour milling, sawmilling, brewing, and the manufacture of agricultural equipment and dairy products.
Osorno was first founded in 1553, on the site of the Native American village of Chauracahuin, by Spanish conquistadores under Pedro de Valdivia; it was originally called Santa Marina de Gaete. After the original settlement was abandoned, the site was resettled in 1558 and named San Mateo de Osorno. Destroyed by the Araucanian tribe in 1602, it was reestablished (1776-1796) on the orders of Ambrosio O'Higgins, Irish soldier of fortune and father of Bernardo O'Higgins. In the late 19th century an influx of German settlers spurred growth, and in 1895 the railroad reached the city. Population (1998) 141,468.
