On the western banks of the Nizao River at the end of the 16th century the Spanish captain Juan Tello de Guzmán established the Yaguate settlement. The early settlers were dedicated to raising cattle and were not dedicated to the cultivation of agricultural products with an agro-industrial vocation, as were the mills in which a slave structure allowed the growth of a different society.
The rancher settlements were places where families lived whose main occupation consisted of raising horses and cutting wood.
While the mill required a large amount of labor for its proper functioning, in the ranch the massive use of the slave was not necessary, which is why homogeneous human settlements arose in their surroundings where the Spanish were a majority.
Economy
The town square has a basketball court and several churches. There is also the Ayuntamiento, the town hall. There is a small secondary school, a clinic, and a few small grocery stores, along with several bars. The region is filled with sugar cane fields, and nearby the town is a large sugar refinery called "Ingenio Caei."
The road heading north from the town leads through several small neighborhoods to the Nizao river. There are many sand mines in the area, as well as some very good swimming spots as the river is very clear. Farther up the road is the Valdesia Dam.
In 2003, the town suffered a flood that covered roughly half of the town. Missionaries from the Church of Jesus Christ of Latter Day Saints helped to rescue many people from the flood, although one person died, trapped behind a locked door.