Valdivia was crowned the capital of Chile's newest Región XIV (Los Ríos) in 2007 after years of defection talk surrounding its inclusion in the Lakes District despite its geographical, historical and cultural differences. It is the most important university town in southern Chile and, as such, offers a strong emphasis on the arts, student prices at many hostels, restaurants and bars, and a refreshing dose of youthful energy.
With its German effervescence and subtle cafe culture, Valdivia is also one of the more attractive cities in the region due to its scenic location at the confluence of the Calle Calle, Cau Cau and Cruces rivers, but, truth be told, Germanic heritage is way more present in Puerto Varas or Puerto Octay.