After the revolt Ovando determined that five new towns should be built in the rebellious territory. Velázquez was sent to the western end of the island to establish Salvatierra de la Zabana and perhaps other towns. Velázquez resided in Salvatierra de la Zabana and all five of the new settlements were placed under his administration. By 1511, Velázquez was one of the wealthiest men on Hispaniola. He held encomiendas at Verapaz, Salvatierra de la Zabana, and Santiago de Caballeros, where he was a partner with an unidentified encomendero in mining enterprises.