I’ll always think of Cuenca as the city where women wear pants and dogs wear skirts.

A friend says the ratio of women to men in Cuenca is 2:1, and everywhere you look you’ll see female shopkeepers, waitresses, salespeople, business owners, police officers, etc.

Don’t be surprised, in fact, to be stopped in city traffic as a pigtailed indigeña brandishing a switch crosses the road in front of you, leading four cows on a long rope.

“Why do the woman and the cows cross the road?” you might ask. To get to the other side, of course—to get from one small patch of grass where the cows can graze to another.

All this is just a sign of the times.

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Many of Cuenca’s men—particularly amongst the lower class—have left the city for opportunities elsewhere, leaving wives and mothers to take on jobs the men once held. Like minding the cows.

The fact that women mind cows on what are now city streets is because Cuenca is quickly growing. Like many cities along Ecuador’s “Spine of the Andes,” Cuenca can only expand as its crescent-shaped valley allows. Once-rural areas are being swallowed up by and forced to exist within this urban sprawl.

Out of necessity, women are taking on what have typically been thought of as men’s jobs. Fortunately, Ecuador is progressive when it comes to women’s rights and respect for women in positions of power.

Rocío Vázquez, owner of Cuenca’s enchanting Hotel Mansión Alcazar and a former national minister of tourism, told me that women in the workforce are accepted in Ecuador, although salaries aren’t always on par with men’s.

Rocío and her husband, Robert McCartney, graciously took me to visit their hacienda-style riverside home—Rocío’s family home. Just minutes from the center of town, this piece of heaven hasn’t been swallowed by the city’s growth. There is enough land to accommodate Rocío’s championship horses, and for their large, friendly dogs to roam freely.

Rocío’s dogs, by the way, do not wear skirts. And why so many dogs in Cuenca do is a bit of a mystery….

I went to Cuenca to reacquaint myself with the city International Living recently named in its Global Retirement Index as the No. 1 retirement destination in the world. I was there to visit with expats and take the temperature of the real estate market.

On a tour of homes for sale, a fluffy little ball of wiggling fur greeted us wearing a polka-dot skirt. Maybe the altitude enhanced my imagination, but every small dog I saw thereafter was similarly attired—the source of which can be traced back to a vendor in the city’s main plaza. Accompanied by his own well-attired mini-poo, he was hawking all sorts of doggie duds, from futbol jerseys to prom gowns.

“Cuencanos love their dogs,” said my real estate tour guide, David Morrill, when I asked about the phenomenon.

Although Cuenca is Ecuador’s third-largest city, its central historical district feels more like a charming old-world town, with tidy plazas, ancient churches and cobblestone streets lined with colonial-era adobe-walled buildings transformed into small hotels, restaurants and shops.

A World Heritage Site

The heart of the city is its largest plaza, the tree-shaded Parque Calderon, where musicians play in the bandstand and street vendors sell everything from peanuts to, yes, dog clothes. I spent a lazy Sunday afternoon there watching three photographers work the crowd, snapping photos of kids wearing big sombreros perched atop stuffed horses. (“Not real horses, play horses,” one little girl said.)

Dominating Parque Calderon is the Catedral de la Inmaculada Concepción, also called the “New Cathedral.” Construction on this massive building began in 1885 to replace the “Old Cathedral”—El Sagrario—on the opposite side of the plaza, which dates from 1557 and the Spanish conquest.

The blue-tiled domes at the back of the New Cathedral are Cuenca’s most-photographed landmark. But there are many worthy others­; a good deal of the city’s colonial architecture remains intact, which is why Cuenca was declared a UNESCO World Heritage Site in 1999.

It’s also why most foreigners who relocate to Cuenca want to be within walking distance of the city’s historical district, or Centro.

“Living in Centro is like taking a step back in history. And it’s where all the excitement is,” says David Morrill. “Restaurants and bars, art galleries and lots of cultural activities…. But it can be noisy, so expats typically don’t want to be right in the heart of Centro, but within a 15-to-30-minute walk.”

That’s what makes the new Palermo building so attractive. Ten of the 98 condos in this 17-story building have been sold to foreigners because of the proximity to Centro, and thanks to amenities like 24-hour security. Not to mention the size and affordability of the apartments themselves.

This is the tallest building in Cuenca, and final details like interior finishings are now being completed. All the condos feature built-in cabinets and closets made with a gorgeous hardwood, chanul, which Ecuador is known for.

The price for a 1,400-square-foot, three-bedroom/two-bathroom apartment here is $110,000; a 2,000-square-foot penthouse with magnificent floor-to-ceiling views of the entire city and the mountains on either side is $200,000. Both come with two parking spaces and full use of the building’s social areas, including gym and swimming pool.

Less-expensive condos can also be had within walking distance of Centro. A two-bedroom/two-bathroom 850-square-foot condo in a new building across from the Rio Tomebamba is for sale for $69,000. In the Portal del Sol building, where construction has just begun, prices begin at $47,000 for a two-bedroom, two-bathroom unit with tile and wood floors, granite countertops, 24-hour security and more.

There are plenty of options, too, for those who prefer to live right in Centro. Just five blocks from Parque Calderon, a historical colonial building is being renovated into nine one- and two-bedroom lofts and duplexes. Prices range from $45,000 to $107,000 depending on size. The ground-floor commercial space will include a ceramics gallery and artists’ workshops.

Elinor Williams and Alan Stiles, who retired to Cuenca from San Francisco, say they wouldn’t live anywhere but Centro.

“We like walking everywhere…to the mercado, restaurants, art galleries,” they say. “We love Cuenca and we particularly love our house.”

It’s easy to see why. In El Barranco, a neighborhood known for its whitewashed houses with red tile roofs, the home Elinor and Alan bought is perched on a hillside adjacent to a massive stairway. It leads from Calle Larga—a Centro street resplendent with active nightlife come weekends—to the tree-lined boulevard that runs along the Rio Tomebamba, the definition of a babbling brook if there ever was one.

Hillside Barranco is literally on the edge of Centro, and within walking distance to some of Cuenca’s most modern supermarkets and malls. Elinor and Alan spent two years renovating their two-bedroom home, which also includes an office for each of them.

From San Francisco, they shipped numerous pieces of art and furniture they’ve collected from around the world, and they transformed the “little house on the stairs” into something straight out of Architectural Digest. Not surprising, since both are retired architects.

“We’ll continue to travel,” they say, “but we can’t imagine living anywhere but Cuenca. The people are friendly, the weather is perfect and the cost of living can’t be beat.”

Case in point: I went to dinner with Elinor and Alan one night just a few blocks from their home. We were joined by five other hungry people and we ordered more naan, daal and chicken curry than we could possibly eat and more beer than we could drink. Total cost per person: $8. And that included the tip.

Top-Notch Health Care

Elinor, Alan and other expats I met in Cuenca all mentioned the top-notch (and more-than-affordable) health care available here.

Most expats arrange medical insurance through their preferred hospital; in this case, Cuenca’s Hospital Universitario del Rio, associated with the Boston University Medical Center. Hospital del Rio’s private insurance policy costs as little as $85 a month for a 61-year-old, says David Morrill.

“People come to this hospital from all over southern Ecuador,” he says. “It has a very good reputation.” (You must be younger than 70 years old to qualify for the insurance program.)

The big need-to-know story about Cuenca, though, says David, “is that despite its being singled out by International Living, Lonely Planet, National Geographic and other publications over the past year, there are only about 700 full-time expats in a population of 450,000. It’s still a great place for those who don’t want to live in an “expat-only” community and who want to mix into and experience another culture.” For more information on living in Ecuador, see: www.internationalliving.com/ecuadormanual

NEED TO KNOW

How to get there: Cuenca is 274 miles south of Quito and 155 miles southeast of Guayaquil, cities with international airports. To get to Cuenca, you must first fly into one of these and then catch a domestic flight. Driving isn’t recommended, as curving single-lane mountain roads will double the time you’d think it would take. The drive from Quito to Cuenca, for instance, takes about 12 hours. Ecuadorian airlines TAME (www.tame.com.ec), Aerogal (www.aerogal.com) and Icaro (www.icaro.aero) all fly to Cuenca, and fares run about $70 one way.

When to go: Any time is a good time to visit Cuenca. Being so close to the equator, the weather is spring-like year-round, averaging 70 to 75 degrees Fahrenheit in the daytime. Rainy season is January to May, although there’s seldom an all-day rainy day. On November 3, Cuenca celebrates its independence, and in June, the Corpus Christi religious festival is celebrated for a week. During festivals, you’ll find nightly parties at Parque Calderon with music, fireworks, street theater, dancing and more.

Where to stay: When in Cuenca, there’s no reason to stay anywhere but in the Centro.

You can’t go wrong at Mansion Alcazar, a gorgeous boutique hotel with cozy nooks for intimate conversations and lots of antiques. An onsite restaurant and bar and an attentive staff will make sure you’re well taken care of. And don’t miss the flower- and hummingbird-filled garden. See: www.mansionalcazar.com.

Other options include Hotel Crespo (www.hotelcrespo.com) and the delightful Kookaburra, known for its wholesome, delicious food and also with a couple of suites to let. E-mail: KookaburraCuenca@gmail.com; website: kookaburracafe.typepad.com.

Where to eat: Besides the aforementioned Kookaburra Café at Calle Larga 9-40, try the Eucalyptus Café on Gran Colombia at Benigno Malo (www.cafeeucalyptus.com) and Zoe’s on Borrero at Sucre. Both host Friday-night expat get-togethers.

What to do: You won’t tire of walking and gawking in Centro. Poke your head into the many churches or take a break on a bench in one of the countless parks and plazas. The Museo del Banco Central, which provides a historical overview of the city, is next to the Pumapungo archaeological site, a former Inca palace.

Visit a Panama hat factory (Cuenca is known for these) or hire a driver for a visit to Eduardo Vega’s ceramic workshop and gallery on the road to the Mirador de Turi, high on a hill overlooking the city.

Outside Cuenca, Cajas National Park, with its scenic hiking trails and peaceful blue lagoons, is an hour north of the city. Ingapirca, Ecuador’s most impressive Inca ruins, is just two hours away.

For a gringo fix—or an English-language book—stop at the Carolina Bookstore, run by expats Carol and Lee Dubs, on Hermano Miguel and Calle Larga.

Real estate sales and rentals: For homes, condos, farms and more at all price points, e-mail David Morrill at: dmorrill@earthlink.net; website: www.cuencarealestate.com.

To learn more: Information, opinions and more about Cuenca from those who live there can be found at: www.cuencahighlife.com.

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A Historical City of Many Names

Although Spaniard Gil Ramirez Dáva is credited with “founding” Cuenca (and naming it after a town in Spain) on April 12, 1557, the city had already been inhabited for centuries.

Before the Spanish arrived, Cuenca was the second-largest city in the Inca Empire (after Cusco in Peru). The Inca had called the site Tomebamba, which means “knife blade” in the Quechua language. This is also the name of one of the four rivers that cuts through the city, along with the Yanuncay, Tarqui and Machangara.

Amazingly, when the Incas conquered the area in the late 1400s, the Cañari Indians had already been living here for centuries—from as long ago as A.D. 500. They called the city Guapondelig, which means “plains as vast as the sky.”

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Buy or Rent for Less in Cuenca

“Most expats prefer condo living,” says David Morrill. With 24-hour security and no yard to maintain, you can lock up and take off for a week or a month or more without a worry.

But if you’d prefer a detached home with a yard, you’ll find plenty of those for sale in Cuenca, too. One I visited (where the skirted dog lives) has ample space—four bedrooms, three bathrooms, four social areas (living rooms or TV rooms), office, large kitchen, maid’s quarters and enclosed parking for two cars—and is selling for $220,000. Like everything in Ecuador, the price is negotiable, says Kathy Gonzalez (David’s business partner and a native of Cuenca).

Furnished rentals average $350 per month for a basic two-bedroom apartment to $1,500 per month for a luxurious two-level, four-bedroom, five-bathroom condo with master bedrooms on both levels and new high-quality furnishings, including televisions, computers, washer/dryer, etc. (The latter also includes utilities, DirecTV and Internet service.) You can rent a furnished, 5,000-square-foot house with five bedrooms, five bathrooms and a huge yard and outdoor entertainment area for $1,000 a month.

Editor’s note: Learn more about Ecuador and other countries in our daily postcard e-letter. Simply sign up for IL’s free postcards and we’ll send you a FREE REPORT — Ecuador: Live Like Royalty on Half Your Social Security.