After the capture and subsequent murder of his son and successor Atahualpa in Cajamarca, resistance to the conquista centered on the Incan general Rumiñawi, who withdrew his troops to the region.

After a drawn-out series of engagements with the conquistadors, who allied with the Cañari (recently conquered Incan subjects), Rumiñawi, faced with the prospect of near-certain defeat, ordered the city of Liribamba burned and the treasures of the Incas hidden or destroyed.

By the end of the year, Incan resistance had collapsed, culminating in a battle at the volcanic mountain Chimborazo, and Rumiñahui was captured.

The city in the valley was renamed by its founders Villa de Riobamba, which means "plain on the journey" (possibly referring to its centrality).

In 1884, the parishes broke from the metropolitan umbrella of Riobamba and joined together to form Villa La Unión, which is the formal name of the village today known as Cajabamba.