The Mediterranean-type environment of South America, broadly defined as the continental area characterized by winter rainfall and summer drought, is confined to a narrow band about 1,000 km long on the western side of the Andes in north-central Chile (Arroyo et al., 1995, 1999). Although much has been written about the climate, vegetation, and landscapes of this part of Chile, and comparisons have been drawn with California and other Mediterranean-type regions of the world (Parsons, 1976; Mooney, 1977; Rundel, 1981; Arroyo et al., 1995), a modern synthesis of information on the physical setting, regional biota, and historical development of ecosystems in central Chile has not been attempted. This chapter is intended to provide such an integrated picture, emphasizing those aspects most peculiar to the region. Since the earlier floristic work on the Chilean matorral (e.g. Mooney, 1977), the name given to the vegetation of central Chile, there is now a much greater appreciation of the geographic isolation and high levels of biological diversity and endemism in this region of South America (Arroyo and Cavieres, 1997; Villagrán, 1995; Arroyo et al., 1995, 1999). Because of the great richness and singularity of its terrestrial flora, this area of the continent is considered to be one of the world’s 25 hotspots in which to conserve global biodiversity (Arroyo et al., 1999; Myers et al., 2000). An analysis of the main features of the Mediterranean environment in South America should therefore address the causes of such high floristic richness, the nature of current threats to biodiversity, and the prospects for its conservation in the long-term. A discussion of conservation concerns closes the present chapter (but see also: Arroyo and Cavieres, 1997; and Arroyo et al., 1999). In view of the vast literature on the biota and physical setting of central Chile, this chapter adopts a selective approach, from a biogeographic perspective, of what we consider to be the most remarkable historical, physical, and ecological features of this environment, which in turn may explain its extraordinary richness in plants and animals. Mediterranean-type ecosystems occupy a narrow band along the western margin of South America, from 30 to 36°S in central Chile.