The town was originally a native settlement called Pankaj, or Pinola, whose inhabitants presented a strong defense to the conquistadors from Pedro de Alvarado, until they had to finally surrender to the Spanish invaders at the fortified position of Jalpatagua, where they were withdrawn along with the Petapa natives.
In 1690, when Fuentes y Guzmán wrote Recordación Florida the town was prosperous and its agriculture was booming, but it was not as well to do if its silver mines had been exploited.