The city is nicknamed "The Pearl of the Gulf". Ciudad del Carmen was a small city mostly devoted to fishing until the 1970s when oil was discovered in the region; since then it has grown and developed substantially. The city could long be reached only by ferry boats; this changed with the construction of a causeway bridge to the mainland in the 1980s.
This border area at the western edge of the Yucatan Peninsula was previously part of the state of Yucatan, then of Tabasco; since 1863 it has been part of the state of Campeche. In 1840 the city had a population of about 7,000.
The city is also the seat of the State of Campeche's District of Carmen, which includes the city and the surrounding area. In 1999 the population of the District of Carmen was 181,566 people.
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