The town is well known for its tropical highland climate, unlike the rest of the country, due to its location in the Cordillera Central.

During the Spanish Colonization of the Americas, the district of Boquete, along with the rest of the Talamanca highlands, were isolated due to the topographical character of the area, serving as a refuge for the Ngöbe Buglé peoples.

It is not until the 19th century, when colonization of the Boquete region began, with population from Gualaca, Bugaba, David and a community of foreigners (mostly French and Germans) and some north Americans who started the growing of coffee, vegetables and the cattle raising.

In 1907, the area had 6 villages: Lino, Bajo Boquete, Quiel, Bajo de Monos, Los Naranjos, Jaramillos and Palos Bobos (today Palmira); and it was made the first agricultural census by the Panamanian new government and it shows that the main activity of the population was cultivation of Arabica coffee that start to be well known because it richest cup flavor.

However, the inhabitants made a request to move the capital to Bajo Boquete, due to its central location in the district.