Chile did not incorporate the lands of the Araucanía Region until the 1880s, when it occupied the area to end resistance by the indigenous Mapuche by both military and political means.

After sending many forces against the Mapuche, the Spanish would cut their losses, establishing the southern border of their colony at the northern banks of the Biobío River.

Until the mid-20th century, the large agricultural estates (estancias) that were established in Araucanía were cultivated in wheat, led to its being called the "Granary of Chile".

Virgin forests, featuring coigüe, raulí and tepa trees, as well as lingue, tihue and cordilleran cypress, criss-cross the region in all directions.

Its fruit, the piñón (a type of massive pine nut, often growing to the size and weight of a basketball or a bowling ball) is still a staple food for the indigenous Pehuenches and local residents.

Beginning in the mid-19th century, with the German Revolutions, immigrants were often fleeing political upheaval and poor economies, seeking a new place to live.

In 1903, a fleet of 88 Canarian families—400 persons—arrived in Budi Lake (and currently have more than 1,000 modern descendants) as a response to the government's call to populate the region, and signed contracts for the benefit of a private company.

While many Canarians obeyed their servitude, some of those who disobeyed the provisions of repopulation tried to escape their agreements and were arrested, or the indigenous Mapuche people took pity on the plight of these individuals who were on their former lands.

[12] Smaller numbers of Arab (largely Syrian, Lebanese and Palestinian), Chinese, Japanese, Korean and people of Euro-North American and Australian descent settled in La Araucania in the early 20th century.

According to the 2002 census, the most- populated cities are: Temuco (260,783, includes Padre Las Casas), Villarrica (45,531), Angol (43,801), Victoria (23,977), Lautaro (18,808), New Imperial (14,980), Collipulli (14,240), Loncoche (14,191), and Traiguén (14,140).

Agriculture has become highly diversified; wheat is still the main crop, but production of oats, grapes, and lupines has increased significantly, and fruit and flower growing are also emerging.