Pisagua was founded in 1611 after an edict by the Viceroy of Peru which established a base from which it could be possible to stem the illegal traffic of gold and silver flowing from the important mines of Potosí and Oruro, in the Highlands of the "Audiencia of Charcas", to the British and Dutch pirates operating in the Corregimiento de Arica.
It was not until 1810 when large nitrate ("salitre" or saltpeter) deposits were discovered in the Corregimiento de Tarapacá that Pisagua became an important port due to its major role in the export of this product.
During the first years of the 20th century, Pisagua had become one of the most important ports of the whole country (after Valparaíso and Iquique), with offices from major banks, and one of the most beautiful cities on the Southern Pacific coast.
However, at the end of the 1950s, Pisagua lost most of its population and economic base and went into precipitous decline and even ceased to be the third town in importance of Tarapacá Province (after Arica and Iquique).
This happened during the rule of Carlos Ibáñez del Campo (for male homosexuals), as well as that of Gabriel González Videla (for communists, anarchists and revolutionaries) and more recently, during Augusto Pinochet's dictatorship (for left-wing militants).
Today, Pisagua is no longer the proud and rich port that once was but a small and isolated village with a population of just 260, included in the municipality of Huara, which has only 2,600 inhabitants itself.