Arequipa, city in southern Peru, capital of Arequipa Department, near Mollendo. Located on the Pan-American Highway, the city is the commercial center for southern Peru, northern Bolivia, and western Brazil. Extensive trade in cotton, wheat, rice, and sugar is carried on in the city through railway connections with the seaport town of Mollendo. The chief industry is the grading and packing of alpaca wool. Arequipa has a mild, dry climate and is located in a beautiful mountain valley surrounded by several peaks, the highest of which is Volcán Misti (5822 m/19,101 ft), notable for a perfectly shaped snowcapped cone. The city was founded in 1540 by the Spanish explorer Francisco Pizarro. The old city was virtually destroyed by an earthquake in 1868 and has been completely rebuilt. Population (1998 estimate) 710,103.
