Chiloe Island is an island in the Lake District in the southwest part of Chile. It is the second largest island in Chile and home to many of Chile's indigenous peoples. The island's capital is Castro, where many of the homes along the water, are built on wood pillars or stilts as there is a significant tide change that can leave boats sitting on mud flats till the next high tide comes in. Chiloe is also the home of the Punihuil nature preserve where Magellanic and Humbolt penguins, as well as many varieties of birds reside.