Due to the abundant wealth of indigenous place names in the current territory of La Libertad, it is believed that the first inhabitants were of Mayangna-Carib origin, who were displaced by the Chontales people.

The last Carib settlement was "El Jobo," located 2 kilometers west of the current city, abandoned in 1730 due to dysentery that decimated its inhabitants.

They discovered that the natives were washing gold sands from the Mico River, which caused immigration of nationals and foreigners and led to the creation of the "El Mineral" settlement.

During the administration of Doctor and General José Santos Zelaya, through Executive Decree published in the "Diario de Nicaragua" No.

Broadly speaking, its inhabitants are dispersed across the vast territory as small conglomerates, in three mountain ports (Betulia, Carquita, and Palmira), in three cooperative settlements (San Marcos, Las Praderas, La Victoria), and in places adjacent to farms.

La Libertad is also home to the largest open-pit mine in Nicaragua, which processes six thousand tons of earth and rocks each day.