The municipality of Boaco was traditionally part of the Chontales Department. On February 4, 1910, the government of José Madriz established the department of Jerez with the city of Boaco as its capital. However, the conservative government reversed that law. It was not until July 18, 1935 that the government of Juan Bautista Sacasa created the Boaco Department, incorporating the municipalities of Boaco, Camoapa, San Lorenzo, Teustepe, San José de los Remates and Santa Lucía. Boaco was designated the capital of the department.