The area was originally occupied by Maya and Lenca people from pre-Columbian times who formed two settlements called Eramani and Lentercala.

In 1647, Mayor Francisco de La Cerda was appointed by the Spanish throne to officially demarcate the territory of the indigenous population.

He divided the land into two jurisdictions, not corresponding to the Eramani and Lentercala sites, and created boundaries and names for the surrounding small communities.

Called the La Esperanza Hydro Project after the city, the dam began producing electricity for the surrounding communities in 2003, but its phase two expansion was not completed until 2006.

During the winter, it rains primarily in the afternoon and the intense showers often make small dirt roads into the surrounding mountain communities impassable.

Due to its high altitude, La Esperanza has a cooler climate than most of Honduras, with an average annual temperature of 18.1 °C (64.5 °F).

[9] The municipality has the following five villages (aldeas), which encompass 36 hamlets (caseríos):[10] The predominant ethnic group are the Lenca people, who have occupied the southwest region of Honduras since pre-Columbian times.

[citation needed] Life in La Esperanza and Intibucá is centred primarily on agriculture, which is the mainstay of most residents, especially the Lenca.

Lenca farmers arrive from the surrounding communities and sell their fruits and vegetables in the street, while some La Esperanza residents manage permanent wooden stalls.

Produce available includes lettuce, spinach, carrots, cucumbers, broccoli, cauliflower, cabbage, potatoes, tomatoes, sweet and hot peppers, yucca, onions, cilantro, apples, blackberries, mangoes, pineapple, bananas, platanos, avocadoes, grapes, peaches and strawberries.

As such, Christmastime or Navidad, and Holy Week preceding Easter, called Semana Santa, are major times of celebration.

La Esperanza is well known for the production of sweet, liqueur-like wines from fruits such as strawberries, pears, peaches, blackberries, and apples as well as the local favourite, potatoes.

[17] La Esperanza is located on the route between Tegucigalpa and Western Honduras, making it a convenient place for stopping while traveling in the country.

From La Esperanza, one can take the road to Yamaranguila and connect with Highway CA 11-A to reach San Juan, Intibucá; Gracias, Lempira; and Santa Rosa de Copán, Copan.

Transportes Carolina operates a fleet of Pullman buses which run hourly to/from Tegucigalpa and San Pedro Sula making stops at major cities along the way.