This chapter describes the town of San Diego.

The town of San Diego has a lot of flat plains and mountains, making farming its primary business. However, because of the Filipino farmers' ignorance, the products they produce are sold at a very cheap price to the Chinese buyers.

Like most towns, San Diego has a legend around it. There used to be an old Spaniard who came to the town and bought the whole mountain area, using jewelry and clothes to pay for the land. Later on, he disappeared completely.

One day, some farmers who were tending to their kalabaw (carabao) found the Spaniard's decaying corpse hanging on a balete tree. Ever since then, people have been afraid of entering the mountains.

Later on a mestiso arrived in town, saying that he is the son of the one who died. His name was Saturnino. He occupied the land that the dead man had, and had a family there. His child was Don Rafael, Crisostomo Ibarra's father. When Saturnino died, Rafael took over. He made the town flourish, so the farmers and citizens liked him.

The priest in charge of the town used to be an indio, but when he died, Padre Damaso replaced him.

Notes:
  • mestiso - of mixed ethnicity
  • indio - a derogatory term for Filipinos used by the Spanish before

Analysis:
San Diego represents many of the Philippines towns back during the Spanish colonization: lush greens and vegetation, mountains, rivers, etc. Farming was also very prominent back then. However the foreigners such as the Spanish and the Chinese are the ones who had control over the Filipino farmers.