Pelileo is also known as the Blue City, because of its booming jean industry, mainly located in the El Tambo parish. Another of the parishes of Pelileo is the world famous Salasaca, home to a native American tribe originally from Bolivia that came to the Ecuadorian Andes as mitimaes. The Huambalo parish is well known as the home of artisans of fine furniture.
Pelileo is also known for the distillation of a local liquor called aguardiente. A hard, clear sugarcane-based alcohol, it is one of Pelileo's main products outside of blue jeans.
The main market days in Pelileo are Saturday and Tuesday
