The northeast coast consists of a succession of typical villages located near the Dalcahue Canal. Quemchi is a small port on the eastern shore of the large island of Chiloé and its name means "clay soil". The town extends along the Caucahue Canal and faces the island of the same name. Quemchi is the birthplace of Francisco Coloane Cardenas, one of the greatest Chilean writers, many of whose writings content Chilean southern life. In particular, he evokes the preparation of whaling in his native village in The Whale's Wake: his father himself was a whale hunter. There is a bust of him in the main square of the village.

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