La Paz (lä päs) [key], city (1990 pop. 137,641), capital and largest city of Baja California Sur state, W Mexico. A tourist spot and transportation hub for the southern Baja peninsula, La Paz was first settled in 1811. The city was known for its pearl fishing until the middle of the 20th cent. when the oyster beds were destroyed by disease. It is known for its water sports, as well as being an entry point for the Los Cabos resort area to the south. La Paz is linked to Mazatlán and Los Mochis by ferry, and to Tijuana and Mexicali by highway.