This pleasant pastoral town rests at the foot of the dormant Cotacachi volcano, from which it gets its name, and is best known for producing cheap but high-quality handmade leather goods. The area is also rich in biodiversity, making Cotacachi an attractive place to go for outdoor activities and adventures both around the volcano and among the Cayapas Ecological Reserve.
The diverse cultural and ethnic makeup of the Cotacachi population has become a central focus for the town, as well as a great source of pride. A lot of effort has been put into creating tolerance and solidarity among the indigenous, black, and mestizo residents. In 1996, Cotocachi became the first town in Ecuador to elect an indigenous mayor. The town has even received awards from UNESCO (United National Educational, Scientific and Cultural Organization) and other international organizations for its focus on integration, education, and urban development.
Walk into town, though, and you'll first find a dusty, potholed road that leads to a fairly unimpressive "center" plaza. Keep going and you'll see what all the praise has been about. In the best sectors, Cotacachi is clean and well-maintained. Charming plazas are surrounded by huge buildings painted pink, yellow and green. Not all buildings have been refurbished - some are still dirty, crumbling and supported by decaying infrastructure - but Cotacachi has been taking steps in the right direction.  Cotacachi has seen a burst in tourism recently, with several new restaurants and hostels popping up as a result.  
On the weekends travelers flock to the town to browse its famous "Leather Street", or 10 de Agosto, where leather craftsmen (and women) set up shop to sell their quality leather goods including wallets, purses and jackets.