It was founded during the 1930s, nestled in a small valley in the Andes mountains close to other ski areas such as Valle Nevado, La Parva, and El Colorado.

Located in the commune of Lo Barnechea, 36 km from Santiago at an altitude of 2,340 meters above sea level (7,874 feet), Farellones has a health centre, a school, and about 200 houses.

Skiers began visiting the Farellones area in the 1930s and in 1937, landowner Von Kiesling decided to sell the land off as plots to form a village.

The first ski lift was built in the 1950s in La Gran Bajada (the great descent) in the area that would become later El Colorado, where the boldest skiers could leap over the roof of the Hotel Posada de Farellones at the end of the run.

The Hotel Posada de Farellones is made from a mix of wood and stone in the Swiss style and was built in the late 1930s by Antonio Padrós.

[9] The road would run for 29 kilometers from Las Condes Avenue in Santiago, and would also see the construction of new real estate and a cable cart from Yerba Loca Nature Sanctuary to Farellones village.

Yerba Loca Nature Sanctuary (Spanish: "Santuario Natural Yerba Loca") is a protected area that extends from the top of La Paloma Hill (Spanish: "Cerro La Paloma") to the top of Cerro El Plomo, dividing the valleys of the Blanco River and Olivares River.