[3] In the unofficial history, orally told by the town's first settlers, the municipality was born as a settlement of a group of people from 25 families, who lived in the La Piñuela area.

Before it was populated, it was a mountain port with a military base of the Army, commanded by Major Francisco Javier Hidalgo, who was in charge of moving the families that were in La Piñuela to El Ayote because they were threatened by the irregular army of the Contras during the Contra War.

As the town grew, on weekends, people from the regions would come in large numbers to buy the necessary products that traders brought from different cities of the country.

The population grew rapidly as many demobilized soldiers decided to stay in the territory, received land in the Development Policy that was created or simply took a piece of mountain, and made a farm and family.

The average annual precipitation ranges between 2000 and 2450 mm, dry enough for livestock activity, although the municipality is surrounded by tropical humid forest.