A two hour drive to the east along the coast of Dili via Manatuto will take you to the Baucau, the second largest city in East Timor, which, despite the ravages of 1999 post-referendum carnage, is still a charming town with gorgeous clear water and beaches along the way. Divided into six sub-districts, Baucau has approximately 16,000 inhabitants. The 1,600 kilometers of land serves as a gateway for the neighboring districts of Lautem, Manatuto and Viquegue. During Portuguese occupation in East Timor, Baucau was called Villa Salazar, named after the Portuguese dictator Antonio de Oliveira Salazar.
The political events that beset Baucau in the late 90's coincided quite strangely with the influx of people shipping their products into the country. Nonetheless, Baucau has always been an administrative and agricultural hub. A stroll around the colonial center of town where one can find abandoned Portuguese ruins can be quite uncanny but provides an interesting insight into East Timor's turbulent history. Just be wary of the scruffy dogs roaming in the streets.
Heading out east of Baucau town, the main road curves through arcades of trees and a long way below the ocean providing a picturesque backdrop of terraced rice fields. Baucau has the most highly developed agriculture in East Timor, it produces beans, copra and sweet potatoes besides rice and corn.
The languages spoken in Baucau include Makkasae spoken by the majority of the populace while a number of people above 40 and a few young ones as well understand Portuguese. Most of the inhabitants are Roman Catholics and a few Muslims also live here.
Noteworthy is the airfield of Baucau with the longest runway in East Timor. The Cakung Airport, located six kilometers from the city, which served as the country's principal airport before the invasion of Indonesia in 1975, and is still functional.