Guananico is a toponym of indigenous origin and according to compiled versions of different sources and bibliographic dates, it is associated with Guacanagarix, a 15th-century chief of Hispaniola.

Reliable sources affirm that the city was founded between 1865 and 1870, right around the annexation of Spain by Pedro Santana in 1861.

Its economic base is agriculture, cultivating coffee and cocoa, sowing in lesser quantities kidney beans, corn, and watermelons.

There are about 3,312.5 hectares (8,185 acres) suitable for cultivating principally cocoa, coffee, guineos, yuccas, bananas, and some citrus fruits.

There is also a high proportion of people dedicated to the trade of oranges to that of the small venture of moto concho service, public transportation, and tourism.