The "Villa de Tejutla', town's official name, is an old settlement that already existed when the Spaniards arrived to the region in 1524; it was an important commercial town for the Mam people due to the weaving that was done there. However, its foundation as a colonial town was not official until 25 July 1627, when the encomenderos founded a Spanish town called "Santiato Tenango" next to the Indian town. each town had its own authorities and their own business leaders. Eventually, both towns merged and decided to call the resulting settlement "Santiago Tejutla" to remember the old names; Tenango was on the north side, and Tejutla on the South.