In 1918, the village was elevated to municipality status and renamed after former state governor Ignacio Vallarta. During the early years of the 20th century, most of Puerto Vallarta was owned by the Union en Cuale company controlled by the American Alfred Geist. Geist sold land only in large plots at prices that were quite high for the time and otherwise leased the land on short-term leases. To remedy this situation and to enable the new municipality to develop, the citizens petitioned the government for a land grant based on the new constitution's provisions.