Guafo Island is an island located southwest of Chiloé Island and northwest of Chonos Archipelago, Chile. This island has some 260 square kilometres (26,000 ha) of timber estimated in 2000 to be worth $21 million USD. There are many hills, valleys and streams on the island. The ocean currents have a way of depositing an abundance of fish in this area which makes it a fisherman's paradise.