Camagüey was founded as Santa María del Puerto del Príncipe in 1514, by Spanish colonists led by Diego Velázquez de Cuéllar at a location now known as Nuevitas on the northern coast. It was one of the seven original settlements (villas) founded in Cuba by the Spanish. The settlement was moved inland in 1528 to the site of a Taíno village named Camagüey.

Between 1747 and 1753 Luis de Unzaga, then Captain Governor of Puerto Principe, rehabilitated the town, which was very deteriorated in the War of Jenkins' Ear, and Unzaga rebuilt the church of La Merced.[1]

 

Goat wagon peddler at the Plaza del Cristo with Church of Christ in Background.

It was in 1898 when it received the current name of Camagüey, as a result of Spain's independence. The indigenous name was already used to refer to the region "El Camagüey" in reference to the local chief ('Cacique') Camagüebax, who exercised his command between the Tínima and Hatibonico rivers and was approved on that date for both the city and the province that had been created in 1878 as a military region for the republic in arms.

The new city was built with a confusing lay-out of winding alleys. There are many blind alleys and forked streets that lead to squares of different sizes. One explanation is that this was done by design, to make the city easier to defend from any raiders; by the same version, the reason that there is only one exit from the city was that should pirates ever return and succeed in entering the city, it would be possible for local inhabitants to entrap and kill them. However, locals dispute this reasoning as a myth, asserting that in truth the city developed without planning, and that winding streets developed out of everybody wanting to stay close to their local church (the city has 15 of them).