The town is located along Route 7, northeast by road from Valentines and southwest of Santa Clara de Olimar.

In the 19th century, the area of Cerro Chato was a point of passage for postilions, stagecoaches and troops of cattle destined for other regions of Uruguay.

In 1908, the national railroad reached the town, which turned it into a point from where cattle could be transported nationwide.

[1] On 8 January 1942, Cerro Chato was declared a "Pueblo" (village) by the Act of Ley Nº 10.112.

[3] In 1927, a non-binding plebiscite took place in Cerro Chato to decide to which department it would belong: Durazno, Florida or Treinta y Tres.