Salazie is a volcanic caldera and commune of the Indian Ocean island of Réunion, which is an overseas department and region of France. Th…Salazie is a volcanic caldera and commune of the Indian Ocean island of Réunion, which is an overseas department and region of France. The first settlement of the area took place in 1829 after a cyclone had devastated the nearby coast, and the municipality of Salazie was formed in 1889. The name of the commune is potentially derived from the Malagasy word salazy, meaning 'good encampment'.