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America was fighting with Mexico in order to win the land which we  know today as New Mexico. New Mexico was once part of Mexico, so  when it finally became American territoâ¦ry, naturally they named it  New Mexico.    According to the August 2014 issue of New Mexico Magazine, quoted  Fray Angelico Chavez in his book, The Kingdom of New Mexico,  'Most people think New Mexico was derived from our neighbor, the  Republic of Mexico.
During this period, Mexico was part of the much larger Viceroyalty of New Spain, which included Cuba, Puerto Rico, Central America as far south as Costa Rica, Florida, the southwestern United States and the Philippines.