Valdivia is the capital of the XIV Los Ríos Region.
See where Valdivia is on Wikimapia.
- Valdiviano, Paseo Libertad 50 x Yungay, tele (63) 2240044 
The river cruses are worth it up in to the nature reserve.
Stop at the Mapuche village just across the river to see the night and day economic conditions between the super big houses of Valdivia vs the super poverty of a small town struggling to build a tourism industry.
Oncol Park, 32km northwest of Valdivia, is beautiful.
Buses to and from Valdivia: http://www.terminalvaldivia.cl/