The city of La Rioja was officially founded on 20 May 1591 by the Spanish governor Juan Ramírez de Velasco. Initially, the settlement received the solemn and lengthy name Ciudad de Todos los Santos de la Nueva Rioja, which translates as "City of All Saints of the New Rioja". The founder named the city in honour of his homeland in Spain, seeking to bring a piece of European tradition to the South American continent.
The site for the city's foundation at the foot of the Sierra de Velasco mountain range was chosen due to its strategic advantages. This location provided natural protection from winds and offered access to vital water resources in an arid climate. La Rioja was conceived as a key transport hub connecting northern colonial centres with the Cuyo region and Chile, which facilitated the development of trade and strengthened administrative control over the territory.
From its early years, the settlement's economy relied on agriculture adapted to oasis conditions. It was here that the active cultivation of grapevines and olive trees began, which over time made the region famous throughout Argentina. The cultural appearance of the city was formed under the strong influence of the indigenous Diaguita people. A vivid reflection of this history is the tradition of Tinkunaco — a symbolic ritual representing the peaceful interaction and fusion of Spanish culture with the traditions of the native inhabitants.