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Wikipedia says:
Puno is a city in southeastern Peru, located on the shore of Lake Titicaca, the world's highest navigable lake, at 3,860 m (12,421 ft) above sea level. It is also the capital and largest city of the Puno Region and the Puno Province.
Puno's importance to the vast Inca empire was reflected in a legendary connection. Inca tradition has it that Manco Capac, the first Inca, rose from the waters of Lake Titicaca, under the orders of the Sun God, to start the Inca Empire, which would be centered in the neighboring region and city of Cuzco.
In 1668, viceroy Conde de Lemos established San Juan Bautista de Puno as the capital of the province of Paucarcolla. Later, it was called San Carlos de Puno, in honor of the ruling king, Charles II of Spain.
From that moment, the town began to change physically, as the Spanish priests, in their eagerness to evangelize the natives, built the churches which still stand today.
Today, Puno is an important agricultural and livestock region; particularly of South American camelids (llamas and alpacas) which graze on its immense plateaus and plains.
Many homes in Puno, much like surrounding cities, are half-finished. This is done so that the inhabitants do not have to pay taxes. Much of the city economy relies on the black market, fueled by cheap goods smuggled in from Bolivia.
Puno has been designated to become a Special Economic Zone or "Zona Ecomomica" by Peru's president, Alan Garcia. (...) more....



