The state capital OAXACA sprawls across a grand expanse of deep-set valley, 1600m above sea level, some 500km southeast of Mexico City. Its colour, folklore, numerous fiestas, the huge extent of its indigenous market and its thoroughly colonial centre combine to make this one of the most popular, and most rewarding destinations for travellers, many of whom come here to study. Even the increase in package tourism and the pedestrianization of Macedonia Alcalá, the main thoroughfare from the zócalo to the cathedral, a street now lined with high-class handicraft and jewellery shops, have done little to destroy the city's gentle appeal. Furthermore, Oaxaca is also widely seen as the artistic centre of Mexico, with several state-run and private galleries, resident artists, art and jewellery master classes and regular exhibitions (including free ones in the zócalo). In the market and in shops everywhere, you'll find Oaxaca's trademark fantastical and fantastically coloured model animals.
Oaxaca is becoming an industrial city - the population is well over 200,000, the streets choked and noisy, with large numbers of people choosing to retreat here from Mexico City, resulting in an increase in property values - yet it seems set to remain easy to handle. In the colonial centre, thanks to strict building regulations, the provincial charm is hardly affected, and just about everything can be reached on foot. Provincial it remains, too, in its habits - the big excitements are dawdling in a café, or gathering in the famous zócalo to stroll and listen to the town band; by eleven at night much of the city is asleep, although late-night dancers are still going strong. Surrounding Oaxaca is some fantastic topography, making an impressive backdrop to the city skyline at sunset. The Sierra Madre del Sur enters Oaxaca state from the west, while the Sierra Madre de Oaxaca runs down from Mexico's central volcanic belt. The two ranges meet in the centre of the state and between them, converging in Oaxaca town, lie the three Valles Centrales.


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