Babahoyo, founded May 27, 1948, by legislative decree, is the capital of the Los Ríos province of Ecuador. Its population is cited around 98,000. It is bordered by two rivers, the San Pablo and the Caracol, which join to form the Babahoyo River. This meets the Daule River to form the Guayas River, which runs to the Pacific Ocean at the Gulf of Guayaquil. A processing and trade center for the surrounding agricultural region, the city handles rice, sugarcane, fruits, balsa wood, and tagua nuts.