The territory was described as extending 200 leagues down the Pacific coast from Pedro de Mendoza's grant of New Andalusia.

On May 21, 1534 the king signed three other capitulations to explore and occupy the American lands, establishing provinces or governorates of 200 leagues of north-south extension, including the governorship of Nueva León, granted to Simón de Alcazaba and Sotomayor, also from Atlantic Ocean to Pacific, south of 36° 57' 09S (line from Coronel to Pinamar) and up to 48° 22' 52s (line from Campana Island to Laura Bay).

The Governorate was subsequently extended to the Strait of Magellan and the southern lands from it.

After the territorial division of South America between Spain and Portugal, the Peruvian Hispanic administration was divided into six entities: This territorial division set the basis for the Hispanic administration of South America for several decades.

It was formally dissolved in 1544, when King Charles I sent his personal envoy, Blasco Núñez Vela, to govern the newly founded Viceroyalty of Peru that replaced the governorates.