He later returned to Spain, where he was promoted to the rank of Lieutenant General and named Royal Governor of Chile on July 1, 1683.

However, he was forced to wait for the term of the serving governor, José del Garro, to expire before travelling to take up his post, this meant that he could not assume until 1692.

In 1689, he wrote a Funereal Prayer for Marie Louise of Orléans (Spanish: Oracion Funebre a Doña María Luisa de Orleans) to mark the death of the Queen.

The governor then called the Parliament of Choque-Choque with the Mapuche, realizing Pedreros had been the source of the dispute and made a peace that lasted for nearly thirty years.

Also Poveda had to deal with the expeditions of various pirates against Chilean trade, and the competition between the various functionaries of the Real Audiencia of Chile.