The Founding of Payo Obispo

In order to control the frontier with Belize, to prevent the illegal exploitation of precious woods and to avoid the supply of weapons to the Mayan rebels, in 1898 Porfirio Díaz's government sets up a customs house and a floating military post -- the Chetumal pontoon -- at the mouth of the Rio Hondo. Captain Othón P. Blanco is appointed to command the mission and on the 5th of May 1898 he founds, in the same place, on the bank of the river, the village of Payo Obispo. In 1936 the city changes its name to Chetumal.

Economic Development

Throughout the 20th century Bacalar is gradually repopulated and it grows in parallel with the political changes and the economic and social development of the region. In 1902, under Porfirio Díaz initiative, the Territory of Quintana Roo is constituted. Its economy, tied to the capital and the international market, is based on the exploitation of woods, salt and especially gum, thus generating intense commercial activity.

From 1915 onwards and especially between 1935 and 1940, the agrarian reform produces important changes in the system of land possession and the economic structure of the Territory. Programs to boost immigration are introduced and new urban centers are created.

In the 1970s, due to the sharp fall in the exports of woods and gum which started in the 1950s, the economy is diversified with the production of sugar cane and rice. The creation of new tourist centers changes the landscape and the region's economy explodes. On 3 October 1974, in response to the important changes and advances of the Territory, the Free and Sovereign State of Quintana Roo is declared.