There are two villages outside of Oaxaca that specialize in making rugs, Teotitlan del Valle and Santa Ana del Valle. Both have interesting, local museums but the best known is Teotitlan del Valle. Only 15 Kms down the road from Casa Adobe, Teotitlan del Valle has been famous for its weaving for hundreds of years. The artisans here use natural dyes and many pre-Hispanic designs.
Be sure to visit Rosario Martinez and Ernesto Maldonado at El Tono de la Cochinilla. Using natural dyes and hand weaving all their rugs, they are happy to take custom orders. They also take credit cards and will give you a tour (Multilingual Rosario speaks Spanish, Zapotec and English) and show you how the rugs are created.