Pucón was established in 1883 as a fort in the aftermath of the Occupation of Araucanía when the Chilean state subdued the native population of Araucanía. The location of Pucón was found strategic because of being at the entrance to the Trancura Valley, a place that had become of the authorities' awareness since the Argentine army had chased a group of Mapuches into it though Mamuil Malal Pass during the Conquest of the Desert.
The first hotel in Pucón was Gudenschwager established in 1923, but it was in 1934 with the establishment of Gran Hotel Pucón that tourism became a popular activity in the zone. In 1940 the first road between Villarrica and Pucón was built and in the 1970s the road to Caburga Lake was finished.