The Tacna–Arica compromise or Treaty of Lima[a] was a series of documents that settled the territorial dispute of both Tacna and Arica provinces of Peru and Chile respectively.

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.

[citation needed] In 1922, Chile and Peru agreed to arbitrate the dispute with the President of the United States.

[citation needed] The deal that was finally reached allowed Peru to reacquire Tacna while Chile kept Arica.

Chile had also to make some concessions such as building a Peruvian-administered wharf in Arica and pay a six million-dollar indemnification, among other provisions.