Basauri is a major municipality of Biscay, in the Basque Country, an Autonomous Community in northern Spain. The town is a part of the Greater Bilbao conurbation, being only a few kilometers south of Bilbao. It is an industrial town that also includes monuments such as the tower-house of Ariz. It holds the only prison in the province, located where the rivers Nervión and Ibaizabal meet. The municipality has 42,971 inhabitants (2012).