The first denizens of the region were native tribes that lived on agriculture and cattle-raising about 12,500 years ago. The arrival of the Spanish conquerors and the creation of cities and forts represented the acknowledgment of the new laws by the natives.
In the mid nineteenth century, German expedition member Bernardo Phillipi informed that the territory was suitable to be populated by colonists brought from Germany. Once the colonizing project was approved by the central government, the first shipment of German immigrants landed on present Puerto Montt. Later on, these people settled on the shores of Lake Llanquihue (which stands for "hidden or submerged place" in the Mapundungun tongue).
Thus, every family was granted strips of land of approximately 150 hectares lying perpendicular to the lake. They enjoyed franchises and money allocations that enabled them to clear the plots and use the wood to build their houses. They were peasants and craftsmen and they succeeded in fulfilling themselves as an economically, socially and culturally steady society.
El Desagüe -today known as the City of Llanquihue- became a hamlet and was connected with cities such as Puerto Varas or Puerto Montt to establish trade. The arrival of the railway in 1913 activated the industry and the population grew and developed until the present community was created in 1968.