Around June 13 of 1685 , the Spanish arrived in Ciudad Antigua evict the inhabitants and founded the Villa de San Antonio de los Esterillos , this settlement is also known as Villa Vieja , denominating Villa de San Antonio later in Esteli, when they moved Michigüiste the Valley along the Rio Estelí current (running from English pirates and Indians Xicaques), adopting the name of Villa de Estelí, settling there until today.
Current Outside town, are the remains of what was once the chapel of the Villa in the colonial era, which was visited by Bishop Pedro Agustín Morell de Santa Cruz ( 1752 ) stating that its foundation was for mestizos and mulattos residents of Nueva Segovia. The village was populated mostly by mestizos who worked on the farms, even though the law of the time allowed to build farms, not be reached, the Spanish themselves, because they
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