Chile Chico and Puerto Ibáñez belong to the XI region of Aysen del Gral. Carlos Ibáñez del Campo.
Chile Chico has a population of some 3500 inhabitants, and its origin dates from the year 1909, when a group of families arrived from Argentina.
In 1917, with the war of Chile Chico, when colonists expelled both livestock enterprisers and public forces, who claimed terrains that had been granted to Santiago, the town was formed, to be officially recognized in 1931.
Chile Chico´s commune has a surface of 4.669 square kilometres, and its territory extends from the frontier with Argentina to the limit of Campo de Hielo del Norte. It includes the city of Chile Chico and the most important towns and villages are: Fachinal, Mallín Grande, Puerto Guadal, and Puerto Bertrand.
Due to the weather, the lake, and the good qualities of agriculture, Chile Chico has been given the name of "Ciudad del Sol" (city of the sun).
On the northern side of the lake is the capital of the commune of Río Ibáñez, Puerto Ibáñez, with a port from where ferry boats set out to Chile Chico.
Puerto Ibáñez was almost buried after the eruption of Hudson volcano in 1991.