The city's reputation for silverwork, along with its stylish homes and surrounding landscapes, have made tourism the main economic activity.

However, one interpretation has the name coming from the word tatzco which means "where the father of the water is," due to the high waterfall near the town center on Atatzin Mountain.

This glyph is in the shape of a Mesoamerican ballcourt with rings, players and skulls, derived from the most likely source of Taxco's name.

In pre-Hispanic times, this village was the most important in the area as it was the seat of the Aztec governor who presided over tribute collection in the surrounding seven districts.

[1] The modern Spanish town of Taxco was founded by Hernán Cortés in an area previously known as Tetelcingo, because of the abundance of silver here.

[1][2] Mining here began in the pre-Hispanic period with natives extracting a number of stones for decorative and ritual purposes.

[4] In the mid 18th century, José de la Borda arrived to Taxco and started more modern operations in mines called Pedregal, El Coyote, San Ignacio and Cerro Perdido.

[1] Silversmithing was reinvigorated in Taxco by American William Spratling, who moved to the town in the 1920s, creating silver design workshops and exported items, mostly to the United States.

[13] The city has been named one of Mexico's "Pueblos Mágicos" (Magical Towns) due to the quality of the silverwork, the colonial constructions and the surrounding scenery.

[15] Taxco was home to many influential and popular designers and silversmiths specifically in the early and mid 20th century.

One of the most prominent figures in popularizing Taxco silver was the famous American artist and architect William Spratling.

Spratling discovered Taxco in 1929[16] and was amazed by the artisanal traditions and craftsmanship employed by the local silversmiths.

He visited the nearby town of Iguala and enlisted the help of master silversmiths Artemio Navarrete, Alfonso Mondragón, and Wenceslao Herrera[17] Spratling's first workshop was set up on Calle de Las Delicias in Taxco.

[18] Holy Week in Taxco involves elaborate processions and ceremonies that have gained international fame.

These commemorations date back to at least 1622 when they began in the atrium of the Church of the former monastery of San Bernardino de Siena.

Dishes distinctive of Taxco include jumiles (a type of stink bug) prepared in tacos or Mole sauce, cecina (a cured meat), plum and bean tamales, and a drink called berta (honey margarita).

Much of the house is now dedicated to the Casa de Cultura (Cultural Center) where classes in languages, fine arts and sports such as judo are taught.

[2] It is built with pink stone, flanked by two towers which are plain in the lower half but highly decorated in the upper bell portions.

The Church of the former monastery of San Bernardino de Siena is the oldest in the area, constructed at the end of the 16th century and restored in the 19th after a fire.