[2] Located in the foothills of the Segovia Mountains, the municipality has a population of 31,750 and covers an area of 693 km2.

The town gained much attention when a statue called the Black Christ of Esquipulas was sent there from Guatemala was placed for the first time under a willow tree.

During the decade of 1900, El Sauce was a railway crossing which included items such as coffee and animals being moved to the port city of Corinto.

El Sauce is still a small town dedicated to agricultural production, bees, and livestock.

The town was the site of a battle that pitted the American Marines and Nicaraguan National Guardsmen against Sandinista rebels on December 26, 1932, during the Sandino Rebellion.