Ghosts of the Araucano.

Construction of the Ralco hydroelectric dam on the Bio-Bio River in Chile--being built by Spain's Endesa Chile and backed by the government--has pushed hundreds of indigenous Pehuenche families off their native land in the river's valley. Now just four families remain, the last obstacles, aside from an environmentalist lawsuit, to finishing the long-disputed, US$570 million project, crucial to feed power demand in Chile's growing economy.

Despite offers totaling more than $1.1 million to the remaining families, the Pehuenche claim they would rather die in the rising waters behind the 155-meter dam. For the holdouts, money's not the point. They feel a direct link between their land and centuries of tradition; break that bond, the indigenous claim, and their community will fall apart.

Of course, the Bio-Bio has historical significance, too. Ferocious Araucano natives bloodily defended their land from Spanish colonizers, who effectively never crossed into deep southern Chile. A treaty ended the conquista in 1641 on a narrow Andean stream after a century of fighting. This new standoff is in its seventh year--and counting.

PHOTO BY CARLOS BARRIA/REUTERS * SANTIAGO, CHILE