Formally constituted as a municipality on December 31, 1951, it was founded on April 19, 1911 by Presbítero Nazario Restrepo Botero.

The town is situated between the Risaralda River Valley and the foothills of the Cordillera Occidental.

It is also known as "El Paraíso de Caldas" (the paradise of Caldas) due to the beautiful landscape, the notable condos surrounding it, wide streets and recreational facilities.

The local economy of Viterbo is based largely around agriculture and farming, with principal exports including sugarcane, corn, citrus, tropical fruit and some coffee.

There is also an emerging tourism industry with the boom in vacationing condos construction