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Guanajuato, sits mainly in a steep valley at 2000m. It's an old colonial town and extremely pretty. Traffic (except the odd mountain goat of a motor bike) is restricted to a few main streets and numerous, pretty (think a land version of Venice) sunken and underground tunnels, some of which run along the old river bed. The river was diverted after it flooded the town in 1905 (I think).
Pedestrain access to the sunken roads and tunnels is via sets of (geranium capped) stairs scattered around the old city centre.