Canelones, city, southern Uruguay. It was founded at a nearby site in 1774 and moved to its present location in 1783. Canelones serves as an administrative centre and also functions as a commercial and manufacturing centre for the agricultural and pastoral hinterland, which yields grains, grapes, sugar beets, cattle, and sheep. Flour and paper mills are among the city’s industries. There is a wine-processing school in Canelones. A highway and railroad lead southward to Montevideo. Pop. (2004) 19,631.