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Huatulco is located on the Pacific coast of Mexico in the southwestern state of Oaxaca. Just over a decade ago, the area was merely a row of sleepy fishing towns. Transformed into the newest of Mexico's resort locales by government developers, the eco-friendly city enjoys excellent scuba diving, snorkeling and fishing. Nine bays provide beautiful vistas of the tropical coastline. Visitors will enjoy fine handicraft and glass shopping in the area, and because Huatulco is new to the resort scene, the shops are relatively free from the mass-produced souvenir items you'd find in more established resort areas.