'El dorado' of Peru: Here workers get paid in all the gold they can carry on the payday at the world's highest town

Perched on the eastern edge of the Andes, the village of La Rinconada stands as a stark testament to the lengths humans will go for economic survival. At nearly 5,000 meters above sea level, it is recognized as the world’s highest permanent community. Here, life is dictated by three uncompromising forces: the extraction of gold, the biting cold, and an extreme lack of oxygen.

The World’s Highest Permanent Human Settlement

Located roughly 650 km from the Bolivian border, the town clings to the steep slopes of Mount Ananea in southeast Peru. It sits directly beneath La Bella Durmiente, a local glacier whose receding ice frames the settlement. At this elevation, the atmosphere contains only about half the oxygen found at sea level. This thin air makes even a short walk a physical challenge for newcomers. The environment is further defined by freezing temperatures and a landscape composed of rock, ice, and the debris left behind by decades of mining.

A City Grown Without Infrastructure

What began over forty years ago as a temporary mining outpost has since solidified into a permanent settlement of nearly 50,000 people. However, because it was never planned as a formal city, the town grew without essential services. There is no sewage system and no running water; clean water must be carried in by hand. Waste management is non-existent, leading residents to burn or bury garbage outside the town. While electricity was finally introduced in the early 2000s, the infrastructure has failed to keep pace with the rapidly expanding population.

The Cachorreo System and Daily Life

Gold is the sole reason for the town's existence, and its extraction follows a unique and informal labor system known as cachorreo. Miners work for weeks at a time—often up to thirty days—without a traditional salary. In exchange, they are granted a single window of opportunity to take as much ore as they can physically carry. Whatever gold they manage to extract from that ore belongs to them. This high-stakes gamble continues to draw workers from across Peru, all willing to endure hazardous conditions for the hope of a significant payout.

Rapid Expansion Driven by Gold Prices

The community saw an explosion in growth during the early 2000s, coinciding with a global rise in gold prices. Between 2000 and 2009, the population surged by more than 200 percent. As stories of opportunity spread, new arrivals flooded the mountainside, far outpacing any attempts to organize housing or public services. This has left La Rinconada in a state of "permanent improvisation," where homes and shops continue to expand haphazardly across the steep terrain.

Health Risks in the Thin Air

Living at the edge of human endurance takes a severe toll on the body. Many residents suffer from chronic mountain sickness, a condition caused by prolonged oxygen deprivation. Common symptoms include persistent headaches, dizziness, and heart complications, with researchers estimating that one in four locals may be affected. The situation is worsened by a scarcity of medical facilities; those requiring intensive care must be transported down the mountain to health centers located in the valley.

Persistence Amid Harsh Realities

Despite the retreating glacier and the unresolved health and labor concerns, La Rinconada persists. It exists in a constant state of tension with its environment, fueled entirely by the gold beneath the ice. With no clear plan for the town's future, the 50,000 people here continue to navigate their daily lives in the thin, freezing air of the high Andes.