The history of modern Pucón dates back to February 27, 1883. The city was founded as a strategic outpost during the process of integrating the Araucanía region into the Chilean state. Colonel Gregorio Urrutia is considered the settlement's founder, having chosen this site to create a fortified point designed to ensure security and control over the border territories.
A unique combination of geographical and economic factors contributed to the transformation of a small outpost into a prosperous city. Its location on the eastern shore of Lake Villarrica at the foot of the volcano of the same name provided access to fresh water and fertile land. Additionally, Pucón became an important transport hub on the way to the Andean mountain passes connecting Chile with Argentina, and the surrounding dense forests allowed for the development of the woodworking industry.
In the first decades of its existence, Pucón developed as a center for logging and livestock farming. European settlers, particularly those from Germany, played an important role in shaping the city's cultural code. Their influence is still clearly visible in the local architecture, traditions, and gastronomy.
As early as the 1930s, the region's tourism potential began to unfold. The construction of the famous Gran Hotel Pucón by the state railway company was a turning point, transforming the city from an industrial center into a prestigious holiday destination, which is today called the "adventure tourism capital" of Chile.