35 years ago, a large group of squatters landed in an empty desert near Lima. Now Villa El Salvador has one of the highest literacy rates in Peru and has been nominated for a Nobel Peace Prize.

A few sites:

http://www.munives.gob.pe/index2.htm
http://www.crossculturalsolutions.org/where_you_can_go/peru/default.asp
http://www.pbs.org/journeytoplanetearth/hope/lima2.html
http://www.toolkitparticipation.nl/cases/26