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The area is known as Cerro Castillo because:
-it's a hill
-there are numerous old houses built like castles

It's a quiet residential area - no cafes, no restaurants, no toilets - but is Vina's poshest address. Some of the houses are spectacular -tudor houses nestle next to gothic mansions and there are the eponymous castles dotted around the place, the most notable being the local police HQ. The Presidential Palace is also to be found on Cerro Castillo.

It was on Cerro Castillo that Chile's wealthiest families from Santiago and Valparaiso had their seaside residences in the country's most elite Balneario. It shows in the architecture.

At the foot of the hill is the Club Arabe-Siria and opposite is the Castillo Wulf, now the town council. Also just around the corner is the Cap Ducal, a restaurant and hotel right on the water and shaped like a cruise liner.

The new Sheraton is also at the foot of the hill.]]> http://www.ivebeenthere.co.uk/tips/14437