Punta Arenas, Chile

While Punta Arenas is clearly a thriving city these days, the first Spanish settlements along the Strait of Magellan coast, dating back to the late-16th Century, proved less than successful due to the extremely harsh climate and lack of food and water. In 1843 the Chilean government tried its luck with a team of 21 settlers, and in 1848 the surviving group moved to the banks of the Las Minas River, officially becoming Punta Arenas. The settlement became known primarily as a military penal colony, with a less than illustrious history of mutinies that caused considerable hardship on local residents and the city itself. Ranching, mining and nautical trade eventually helped settle the city down by the turn of the century, and it has continued to grow and prosper with tourism through the new millennium.