Iztepl is the second largest city in Xochimechatl.

Iztepl is often described as the oldest settlement on the island, although the accuracy of this depends the interpretation put on certain archaeological evidence. It was almost certainly the first major settlement of the Xochimechatlan ethnic group, however — other early cities were built mostly by the Chitec, in the north. Iztepl was already a prominent trading centre and meeting place at the start of the 15th Century BP, when a warlord named Ichtlapa managed to unify the tribes of the central plains. Some time after Ichtlapa had established his control over most of the island, he returned to Iztepl and "refounded" it, ordering it to be built up into a grand and glorious city. Ichtlapa's control over the area was weak, however, and when he returned to his northern conquests, Iztepl took up a leading part the rebellion which would overthrow him. In the negotiations which followed Iztepl's death, it was decided that Iztepl, now the largest city on the island, would be the capital of the new Xochatlan Empire. It remained the capital until 628 AP, when the emperor relocated his court to the quieter and more picturesque Tulilopan.

Today, Iztepl is a major population centre of Xochimechatl, and is the largest city with an ethnic Xochimechatlan majority (as Ravenniara, the largest city, is mostly Lendian). It is a significant centre of industry and manufacturing, but wages and living standards are still relatively low. Owing to its history, the city has many monuments, museums, and other sites of interest, but the tourist industry is still in its infancy.

Iztepl is governed by an assembly of forty elected representatives — two chosen by each of the city's fifteen subdivisions, and ten more chosen directly by the city at large. There are two major political parties active in the city — the Progressive Party (liberal) and the Heritage Party (conservative). The Iztepl city government is considered one of the more stable in Xochimechatl, although also suffers from inefficiency and rigid bureaucracy.

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