Cayey was founded on August 17, 1773, by Juan Mata Vázquez, who became its first mayor. It is said that Cayey derives its name from the Taino Indian word for "a place of waters". Its original name was "Cayey de Muesas" in honor of Miguel de Muesas, the then governor of Puerto Rico. The town is located in a valley nestled between Puerto Rico's Cordillera Central mountain range and the Sierra de Cayey at roughly the midpoint of routes PR-1 and PR-52. The routes lead to a road that provides a panoramic view of the island.