View of the colorful sign "Campeche" found on the malecon in Campeche City, Mexico. Officially known as San Francisco de Campeche, Campeche City is the largest and capital city of the Mexican state of Campeche. Located on the coast of the Gulf of Mexico in the southwestern part of the Yucatan Peninsula, the city is currently home to some 220,000 people who refer to themselves as "Campechanos".