Paihuano is situated 91 kms. east of La Serena, on the way to the mountains. It has an area of 1.700 km 2 and its population is around 4 thousand people.
Its economy is mainly oriented to the development of pisco grapes and their subsequent export. The tourist industry is its second largest source of income. The commune covers other major towns of the valley, such as Montegrande, Horcon, Pisco Elqui, Alcohuaz and Cochiguaz.