Panama City was founded on August 15, 1519 by Pedro Arias Dávila, and became the starting point for the exploration of Peru and, eventually, the destination for the silver of New Granada and the gold of Peru.
Because of its strategic location, its port also became a focal point for trade in the South Pacific and the first Spanish city on the coasts of the South Sea or Pacific Ocean and the oldest in the province of Tierra Firme.
Besieged by pirate Henry Morgan in 1671, it was totally destroyed by fire and its remains were preserved in the so-called Old City. It was rebuilt in 1673. For centuries it was the communication hub for routes and places where Iberian and American products were often supplied and traded and it was linked by road with the ports of the Atlantic and the Caribbean Sea (Camino Real and Camino de Cruces).