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The Treaty of Lima solved the dispute between Perumarker and Chilemarker regarding the status of the Chilean administered territories of Tacnamarker and Aricamarker. According to the Treaty, the Tacna-Arica Territory was divided between both countries; Tacna being awarded to Peru and with Chile retaining sovereignty over Arica. Chile also agreed to pay up to 6 million dollars in compensation to Peru.

The Treaty was signed on June 3, 1929, in the city of Limamarker by then Peruvian Representative José Rada y Gamio and Chilean Representative Emiliano Figueroa Larrain.

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