El Encanto was founded shortly before the 1900s by rubber tappers looking to take advantage of the local natives as a work force.

The land owned by Arana was split into two 'departments': La Chorrera on the Igaraparaná and El Encanto, headquarters for sections on the Caraparaná.

The companies efforts to extract rubber and profit culminated in the Putumayo genocide: enslaving, abusing, starving, exhausting, and murdering local populations.

Between 1922 and 1930 groups of natives from the right bank of the Putumayo were resettled in the Ampiyacu basin of Loreto, Peru: so the three of them could retain their work force.

[2] El Encanto has a tropical rainforest climate (Köppen Af) with heavy rainfall year-round.