Located about 600 m (2000 ft) above sea level at the feet of the Aconquija Mountains to the west, the area was originally populated by Aymará-speaking peoples, who gave the site its name with a term meaning "where the cold winds blow."

In the interest of trimming the state-owned railways concern Ferrocarriles Argentinos' chronic deficits, however, the dictatorship at the time had the facility closed in 1980, dealing Tafí Viejo a serious economic blow.

Reopened by President Raúl Alfonsín in 1984, the facility could not recover its role as the city's largest employer and, in 1996, Governor Antonio Domingo Bussi had the installation shuttered yet again.

Continuing to prosper despite past setbacks, Tafí Viejo has also developed thriving services and tourism sectors.

Limited in the past to weekend visits from metro area residents, the city has been attracting wider interest through the Alpa-Puyo resort, a compound of cabins, guided tours and excursions, as well as a small zoo.