The plaza was originally laid out in 1835 by Mexican settlers and is surrounded by a number of historically and architecturally notable buildings.

The town was laid out in the traditional Spanish Colonial style, with a central plaza surrounded by adobe buildings which could serve as fortifications in case of attack.

During the Mexican–American War in 1846, Stephen W. Kearny delivered an address at the plaza from atop what is thought to be the surviving Dice Apartments building, claiming New Mexico for the United States.

In 1854, visiting attorney W. W. H. Davis wrote that the plaza "more resembled a muddy field than a public square, and all sorts of four-footed domestic animals were roaming at large over it.

During this period, the plaza itself was cleared of livestock and wagons and converted to a tidy public park with trees, fences, and a bandstand.