Little is known about the area prior to the 19th century, but archaeological finds have shown that there was continuous human habitation from 580 B.C. Further, evidence has shown that the area belonged to the Aztatlán culture which dominated Jalisco, Nayarit and Michoacán from approx. 900-1200 A.D.
Documents of Spanish missionaries and conquistadors chronicle skirmishes between the Spanish colonizers and the local peoples. For example, in 1524 there was a large battle between Hernán Cortés and an army of 10,000 to 20,000 Indians resulted in Cortés taking control of much of the Ameca valley. The valley was then named Banderas, meaning "flags", after the colorful weapons carried by the natives.
The area also appears on maps and in sailing logs as a bay of refuge for the Manila Galleon trade as well as for other coastal seafarers. It figures in some accounts of pirate operations and smuggling. During the 17th and 18th centuries the Banderas Valley and its beaches served as supply points for ships seeking refuge in the bay. Also, customs operations at San Blas, Nayarit were evaded by using the area as a smuggling point for goods to be sent to Sierra towns near Mascota. Towns located in the high plateaus of the Sierra developed as agricultural centers to support the growing silver mining operations in the towns of Cuale, San Sebastián and Mascota. Whalers also came to the area in the first half of the 19th century in search of the humpback whales that appear in the bay during certain times of the year, which is why some logbooks refer to it as Humpback Bay.
As Mascota grew during the 18th century, so did Puerto Vallarta, transforming itself from a small fishing and pearl-diving village into a small port serving the Sierra towns, because it was a more convenient route to the Sierra towns than the main port at San Blas. Residents of the Sierra towns also started vacationing in Puerto Vallarta, and by the mid 19th century, the town already had its regularly returning population of vacationers.
In 1851, Guadalupe Sánchez, a boatman from Cihuatlán who used to bring salt from San Blas or the Marías islands to Los Muertos beach, became weary of always waiting for the muleteers to pick up the load in San Blas, so he decided to establish himself in Puerto Vallarta, which at that time he called Las Peñas. However, with the date on the purchase of his property being in 1859, and with the already ongoing activities of fisherman, pearl divers, smugglers and foragers in the area, it is impossible to date the first permanent settlement in the area.
1859 was an important turning point for Las Peñas, when the Union en Cuale mining company took possession of land extending from Los Arcos to the Pitillal River and also extending into the Sierra for miles. The Union en Cuale company was owned in part by the Camarena brothers of Guadalajara who had developed a small trade in oil palm in Las Peñas. The government sold this land to the company to provide for shipping, fishing and agricultural support for the growing mining operations in the Sierra.
The 1860's saw Las Peñas develop into a self-sustaining village as the mouth of the Cuale River area was exploited to support the operations of the Union en Cuale company. By 1885, the village comprised about 250 homes and about 1000 residents. Some hard times fell over the next few decades: in 1893 the inhabitants of Las Peñas suffered a severe smallpox epidemic that left many homes in mourning; in 1911 a storm produced a waterspout that left almost 100 people homeless; in 1922 an epidemic of yellow fever caused 150 deaths.











