Located between Baños, and the Amazonian cities of Tena and Macas, Puyo is the commercial, cultural and political capital of the region.

[citation needed] The seasonal changes in the climate are relatively small, and daytime temperature typically range between 18 and 24 °C, with sun and generally short, but heavy periods of rain daily.

At the beginning of the nineteenth century the Canelos region was integrated into the territory of the township of Ambato, a jurisdiction established in 1797 within the Presidency of Quito, which at that time was part of the Viceroyalty of New Granada.

In 1802 King Carlos IV of Spain issued the decree of erection of the Bishopric of Mainas that should also include the Canelos Mission.

During these years the Ecuadorian "East" (Oriente) was abandoned by the central powers; the presence of missionaries decreased even stopped several times, traders transited rather sporadically, exploiters of gold and Spices of the region, especially furs, latex and cinnamon.

On May 29, 1861, and in the independent Ecuador, the National Convention issued the First Law on Territorial Division that distributed the country in fifteen provinces, one of them, "East".

On March 27, 1897, by an Act of the National Assembly, signed by President Eloy Alfaro on 14 April of the same year, the "Region East" was created and with this background the same Eloy Alfaro in 1899, dictates "Special Act East", giving the region, preferential treatment; but as in the previous law, several Amazonian territories continued belonging to Sierra provinces.

The current city of Puyo was founded on 12 May 1899 by the Dominican missionary Alvaro Valladares and nine indigenous Canelos: Captain Eustaquio Palate or Illanes, Ignacio Vargas, Sebastian Illanes, Toribio Santi, and others; who, while looking for a place to stop and rest between Baños and Canelos, found the right place near the Rio Puyo, where today is Central Park.

The missionaries built 3 large huts in that place, there they put a wooden cross and celebrated a Mass, entrusting the people to the Virgin Mary, who was dedicated as Our Lady of the Rosary of Pompeii, Puyo.