Choluteca is a municipality and the capital city of the Honduran department of the same name. Situated in southern Honduras between El Salvador and Nicaragua, the city is generally considered the regional center of southern Honduras and is a major transit point on the Pan-American Highway. It boasts a major bus station and is home to the regional light (ENEE) and water (SANAA) utilities. The city is located on the Choluteca River, near the center of the department.