Baeza was founded on 14 May1559 on the territory of the Quijos-Quichuapeople by the explorer Gil Ramírez Dávalos. During the 16th and 17th centuries, the town was one of the most important settlements in the Ecuadorian Amazon, but since the 19th century it has diminished in importance. Despite this, it remains one of the most important administrative, economic, financial and commercial centres of the Quijos Valley. The main economic activities of the city are livestock, agriculture and commerce.