Panama City was founded on August 15, 1519 by Pedro Arias Dávila, known as Pedrarias, being the

first Spanish city on the coasts of the South Sea or Pacific Ocean and the oldest on mainland that
exists to this day as a city. .27 Its foundation replaced the previous cities of Santa María la Antigua
del Darién and Acla, becoming the capital of Castilla del Oro. On September 15, 1521, it received
the title of City and a Coat of Arms conferred by Royal Decree by Carlos I of Spain as well as its
official motto that is maintained until today Very Noble and Very Loyal City of Panama. Panama
City became the starting point for the exploration and conquest of Peru and a transit route for
shipments of gold and wealth from the entire Pacific coast of the American continent that were
sent to Spain.

In 1671 the city is attacked by the forces of the Welsh pirate Henry Morgan with the intention of
looting it. Due to security measures for the population and property, the Captain General of Tierra
Firme, Juan Alonso Pérez de Guzmán, ordered the evacuation of the city and blow up the
gunpowder stores, causing a gigantic fire that completely destroyed the city. 28 The ruins of the
old city are still maintained, including the tower of its cathedral and are a tourist attraction known
as the Historic Monuments of Panama Viejo, recognized as a World Heritage Site.

Panama City was rebuilt in 1673, located 8 km southwest of the original city at the foot of Ancón
Hill, known today as the Casco Antiguo of the city.29

Early years of the Spanish conquest and the creation of the Panama trade route

On August 15, 1519, Pedrarias Dávila founded Nuestra Señora de la Asunción de Panamá on the
shores of the Pacific Ocean, which, apart from responding to the instructions given by King
Ferdinand to erect towns, became the center of discovery activity and obtaining wealth, with the
departure of expeditions to Peru. Simultaneously with the founding of Panama City, Pedrarias sent
his lieutenant Diego de Albítez to repopulate Nombre de Dios in the Atlantic Ocean, a site that had
been discovered by Christopher Columbus and occupied with some straw huts by Nicuesa in 1510.
Between both ports , the Camino Real de Nombre de Dios was established, a mainland route that
crossed the Isthmus of Panama for the transport of goods and precious metals between both
oceans.