The economy is based on services, due to the town's location on the important Mexico-Nogales highway, small industries (brickworks, furniture, pottery), and agriculture.

Obsidian artifacts, used for religious ceremonies or weapons, have been found and the volcanic soils and minerals likely added to the desirability of the location for settlement.

The prehispanic population of the region maintained workshops for the manufacturing of obsidian objects, including arrowheads and knives for hunting, which were used in trade.

Tripod vases, smooth pottery painted with distinct shades of red, gold, silver, and copper adornments, stone statues of the god Chacmool, and quadrupedal animals.

The establishment of Tepic as a seat of the province of Nueva Galicia on July 25, 1532, was part of a wider conquest of the northwestern region of Mexico in the early 16th century.

Due to the quality of the workmanship of artisans in Ixtlán, its location along established merchant routes, and the richness of its mineral resources, the town acquired regional importance.

According to documents, Don Hernán Cortés stayed in the city when he traveled to Tepic to address complaints against Beltrán de Guzmán.

During the colonial era development of agricultural land followed similar patterns to those found in central Mexico, with Europeans introducing the portmanteau biota of Europe and Africa, including sugar cane and cattle.

Due to its location along the trade routes between Tepic, which at the time was the capital of Nueva Galicia, San Blas and Guadalajara and Mexico City, the town maintained it size and economy.

According to local history, the first Spaniard in Ixtlan settled in an area known today as 'La Haciendita', and after 1650 CE the original location was changed.

On October 25, 1858, after a political pronouncement for the liberals, Ixtlán was burned and occupied by the conservative forces of Manuel Lozada, whose followers were left in peace until General Carbo marched against them in 1876, three years after the execution by firing squad of the local caudillo.

During the centennial celebration of the declaration of independence, in 1910, the previously named Villa de Ixtlán was elevated to the status of a city as a recognition of its growth.

In March, 1911, a local leader named Martín Espinosa publicly declared his loyalty to the Maderistas and started the insurrection against Mexican Federalist forces.

In March 1925 the Pacific Railroad was completed, connecting Ixtlán del Río with the western, coastal, and central parts of Mexico.

In April 1925, for political reasons, Ixtlán del Río was declared the capital of Nayarit for ten days under governor Ismael Romero Gallardo.

The citizens of Ixtlán built a statue on top of a hill near the center of town known as Cristo el Rey in the aftermath of that conflict.

Between the 1970s and contemporary times Ixtlán modernized and was influenced by international trends such as globalization, advances in medicine, mechanization of agriculture, and the development of electronic communication.

Ixtlán maintains a large expatriate community in the American Southwest today, with many returning during Christmas holidays or as retirees.

The feast of the Virgin of Guadalupe is celebrated between December 7 and 15, and a gathering to climb El Cristo Rey takes place in October.

Four kilometers east of town there is a small water park called La Sidra, it is based on a hot spring with reported curative powers.

On a hill overlooking the town there is a statue dedicated to Jesus called El Cristo Rey, with access for automobiles and 544 steps for those wishing to walk.

Local artisans produce arts and crafts that are sold throughout the city and in the plaza, they include leather articles, glassware, pottery, and textile based products.