San Ignacio Town is built on seven hills in the heart of the Cayo District. It sits on the left bank of the Macal River. It is located 72 miles from Belize City, 22 miles from Belmopan and 9 miles from the Guatemalan border. This administrative center for the Cayo District relies on cattle ranching, tourism and small businesses.

San Ignacio is often referred to as Cayo.It was first known as El Cayo, the Spanish word for island. The name was given at the time when San Ignacio resembled an island, sandwiched between the Macal and Mopan Rivers when there were no roads.It has a population of 4,000, which includes Creoles, Mestizos, Mopans, Yucatec Maya, Lebanese, Sri Lankans and a few Garifunas. Spanish is widely spoken and the population is beginning to include inhabitants who are descendants from Guatemalan immigrants.

This town once served as a major collecting point for mahogany and chicle. After mahogany and chicle the economy is based on agriculture and tourism. Tourism has become a very important part of the economy for this district. Not far from San Ignacio are the major Mayan centers of Xunantunich and El Pilar. Also within the town's borders lies the ceremonial center Cahal Pech.

Santa Elena is linked by the Hawksworth Bridge, the highest suspension bridge in Belize, with its sister town San Ignacio Town. The bridge was built in 1949 and named after the former governor who served from 1947 to 1949.

Tipu, an archaeological site,was a village assumed to have been settled by the Mayas. It is about 8km south of San Ignacio, near what today is called Negroman. In the mid 1500's Spanish soldiers and a priest arrived in the village attempting to convert the Mayas to Catholics. Their continuous attempt at conversion, even including threat of death for non-believers, failed.

An anti-Spanish rebellion broke out in 1638, driving out the Europeans for almost sixty years. The rebels of Tipu continued to hold on to their Maya customs. The Spaniards eventually gained control of Tipu in 1707, forcing the Mayas to Lake Peten. During the time the Mayas were in Tipu they had built only a few masonry buildings of which none remain.

Much of the countryside surrounding San Ignacio today is dominated by citrus groves, rolling hills and cattle pastures. The Macal River winds its way through the twin towns of San Ignacio and Santa Elena and is an excellent place to swim or canoe. Numerous resorts and jungle lodges line the banks of the Macal River offering a variety of activities. The Macal River was once the major throughway for timber and chicle moving from the west towards what is now Belmopan and then to the coast.