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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.
For almost 300 years after 1521, Mexico was a colony of Spain and known as La Nueva EspaÃ±a or New Spain. It was the crown jewel in Spains holdings in the New World.After the Spanish conquered the Aztecs in 1521, Mexico grew to include most of present day Central America and the southwestern United States.