The commune is named after Futaleuf� River. Due to the eruption of Chait�n Volcano and the subsequent destruction of Chait�n, Futaleuf� has been the capital of Palena Province since March 2009. The town is close to the Argentine border and has a population of about 2,000. The main income for the community is fly fishing and white water rafting tourism together with forestry and cattle farming. A gravel road links the town to Trevelin in Argentina and to the Carretera Austral.
As a commune, Futaleuf� is a third-level administrative division of Chile administered by a municipal council, headed by an alcaldewho is directly elected every four years. The 2008-2012 alcalde is Arturo Carvallo Pardo (PDC).
Within the electoral divisions of Chile, Futaleuf� is represented in the Chamber of Deputies by Gabriel Ascencio (PDC) and Alejandro Santana (RN) as part of the 58th electoral district, (together with Castro, Ancud, Quemchi, Dalcahue, Curaco de V�lez, Quinchao,Puqueld�n, Chonchi, Queil�n, Quell�n, Chait�n, Hualaihu� and Palena). The commune is represented in the Senate by Camilo Escalona Medina (PS) and Carlos Kuschel Silva (RN) as part of the 17th senatorial constituency (Los Lagos Region)