In the 1960 and 1970s, prior to the creation of the reserve, the area had a strong lumberjack-campesino labour movement.[1] It was for this reason that Revolutionary Left Movement chose it to create a focus of resistance inspired by the Fidel Castro's 26th of July Movement in the Sierra Maestra in order to combat Pinochet's dictatorship.[2] The Chilean army succeeded in isolating the group by August 1981 and in October of the same year its last members were captured.[2]

The reserve was created in 1999 and includes 600 km2 (232 sq mi) of native forest in Chile dedicated to wildlife conservation and tourism. The reserve is owned by the businessman Víctor Petermann who bought it in the 1990s during land sale program of the late Pinochet dictatorship. It had been part of the state-owned forestry operations of Complejo Forestal y Maderero Panguipulli.[1]