In 1700, it became the capital and the seat of power of the Spaniards in the province, which they transferred from La Villa Rica de Arevalo due to continuous attacks by Moros and Dutch.

Its geographical and economic significance eventually evolved when China, Norway, and the United Kingdom opened up their consulates to conduct trade and commerce in the town, especially during its foundation as an international port in the 1850s.

The royal decree granting this title was signed on March 1, 1898, by Queen Regent Maria Christina of Spain.

[11] In the 20th century, all economic activities shifted from Jaro and Molo to the city of Iloilo when businesses aggressively flourished here.

It was re-chartered by the American government on July 16, 1937, and absorbed the old towns of Molo, Arevalo, Mandurriao, and La Paz.

The blaze lasted approximately 12 hours and resulted in ₱50 million worth of property damage (1966 value), making it the most destructive fire in the city's history.

It is bordered by Molo to the west, and separated from Mandurriao to the northwest, La Paz to the north, and Lapuz to the northeast by the Iloilo River.

Iloilo City Proper, along with parts of Molo and Arevalo, is surrounded by the Iloilo-Batiano river system, which formed an almost-island area or a river island that separated from the mainland of Panay in the southern part of Iloilo City.

In recent times, several proposals have arisen for island-type reclamation along the southern shores of the City Proper.

It serves domestic air routes to Manila, Clark, Cebu, Cuyo Island, Puerto Princesa, Sipalay, Cagayan de Oro, General Santos, and Davao City.

[20] The Port of Iloilo, which is located near Fort San Pedro, Iloilo City Proper, serves domestic shipping and cargo routes to/from Manila, Cebu, Puerto Princesa, Bacolod, Cagayan de Oro, Zamboanga City, Davao, and General Santos.