It is crossed by the three rivers Santa Bárbara, San Francisco and Guaymincay, and carries the nickname “El Jardin del Azuay” due to the natural surroundings and mountains.

In the year 1531 - 1532, the Inca Empire of Tahuantinsuyo ended with the death of the last monarch Atahualpa, at the hands of the conquerors that came from the old world, led by Sebastián de Benalcázar whose presence marks the start of the Spanish colonization.

210 years passed since the first mining settlement was established until, in July 1757, Gualaceo was elevated to an ecclesiastical parish of Cuenca, governed by a party judge lieutenant Manuél Dávila Chica and its vicar José Villavicencio.

Manuel Dávila Chica, as leader of the region, contributed to the independence of Cuenca, with men, horses, cedar wood, walnuts and other foodstuffs.

The Independence of Cuenca and the whole Ecuador led to a more republican style of government, initially belonging to the Great Colombia with the Departments of Venezuela, Cundinamarca and Quito.