Cusco, also spelled Cuzco (Spanish pronunciation: [ˈkusko]; Quechua: Qusqu suyu [ˈqÉ”sqÉ” ˈsÊŠjÊŠ]), is a department of Peru. It is the fourth-largest in the country, after Madre de Dios, Ucayali, and Loreto, and borders the departments of Ucayali on the north; Madre de Dios and Puno on the east; Arequipa on the south; and ApurÃmac, Ayacucho and JunÃn on the west. It is administered by a regional government. Its capital is Cusco, the historical capital of the Inca Empire.