The building is a landmark in the city as it contains a shrine commemorating the execution of Miguel Hidalgo, considered the Father of the Country, who died at the hands of a Spanish firing squad on July 30, 1811.

In 1767 the Society of Jesus was expelled from New Spain, and the building remained abandoned until it was converted into a military hospital in 1790, and was acquired by the Federal Government in 1859 after the Laws of Reform had been passed by the liberal regime of President Benito Juárez.

On Saturday, June 21, 1941, the palace suffered extensive damage by fire which gutted the structure; however, it was totally restored and a third floor was added, and the building was re-inaugurated in 1947.

The Patio Central was decorated with a sculpture which represents the four races of humanity; however it eventually was moved to El Parque España, one of the parks in the city centre.

In 2004 under the administration of Governor Patricio Martinez the Government Palace was restored and such features as the State Coat of Arms was added and the sculpture of 'The Four Races' was installed once again in the Central Patio.