In 1855, Arroyo was separated to become an independent municipality, taking the neighborhoods: Ancones, Arroyo, Yaurel, Pitajaya, and Cuatro Calles. By 1878, Guayama was a department head including: Comerío (then Sabana del Palmar), Cidra, Cayey, Salinas, Arroyo, San Lorenzo (then called Hato Grande), Aguas Buenas, Caguas, Gurabo, and Juncos. The development continued with the construction of the town cemetery in 1844, the slaughterhouse and meat market in 1851, and a wooden theater of two levels in 1878. By then Guayama had fourteen sugar plantations operating with steam engines and three with ox mills. Also practiced in this municipality was the exploitation of lead mines by the company "La Estrella", owned by Miguel Planellas, as well as the mineral galena, by the company "La Rosita", owned by Antonio Aponte. In 1881, Guayama is declared a Villa (First Order Municipality).