Calbuco is a city and commune in southern Chile administered by the Municipality of Calbuco. Administratively Calbuco belongs to the Llanquihue Province of Los Lagos Region. The origin of the city was the Spanish Fort Calbuco founded in 1603, and became later an important fish market. The archaeological site of Monte Verde lies within the commune.Calbuco Island is part of the commune and contains the city of Calbuco.