Recent archaeological excavations show that prior to Inca occupation, the gorges of Tarma were settled by many ethnic groups.

Tarma was founded during the policy of "reducciones" under the rule of fifth viceroy Francisco de Toledo (1569-1575).

The Spaniards moved the capital or head of the province from Tarmatambo, located at a slope of a mountain, to the bottom of the valley, called Pampas.

With the introduction of the Intendencias in 1784, the first Intendente Don Juan Maria Gálvez, converted or elevated the status of the village to that of a "villa" or town.

This meant that the Cabildo or city administration was no longer in the hand of the local indians, but turned to the Spaniards and wealthy mestizos.

Tarma was the birthplace of Gen. Manuel A. Odría, President of Peru between 1948 and 1956, who during his presidential term undertook important infrastructure constructions in the city, all of them in operation until today.