Years later, with the arrival of Pedro de Valdivia, the Aconcagua valleys, La Ligua and Petorca and as far as the shoreline, fell under his control until 1552.  Preoccupied with the conquest of the south, the governor handed these lands over to his colleague Gonzalo de los Ríos, famous for the merits, or lack of merits, of his grand-daughter la Quintrala, rather than any of his own. 

Two major events stand out in the history of Papudo: the covert boarding of García Hurtado, from Mendoza, in 1561, heading to Peru and the arrival of Sir Frances Drake, in 1578, who rested there for five days, eating and drinking courtesy of the coastal inhabitants. It was his visit to the bay that started a legend of hidden treasure and one of the Pirate’s Cave, located in the cliffs along the coast.

In 1599 the bay became part of what was later called The Pullally Country Estate, situated near La Ligua, which served as a port allowing it to ship out its products. This estate had famous country houses, stretching from Longotoma to Papudo.

During the final year of the 16th century, the entire Papudo district and its bordering areas were given as a favor to Doña Isabel Osorio de Cáceres, daughter of the conquistador Diego García and daughter-in-law of Governor Bravo de Saravia. Her grandson, Francisco, inherited the entire property, making him a Chilean-born, Colonist tycoon on whom the King bestowed the title Marquis de la Pica. When he died in 1703, his title and estate were passed on to his only descendant, Marcela de Saravia, Antonio de Irarrázabal’s wife. 

From this date onwards the lands are referred to as The Pullally Country Estate, a name which for generations has been associated with the Irarrázabal family and the beaches in and around Papudo, during the period of the Conquista. 

The historian Carlos Larraín refers to the main members of various generations of the Irarrázabal family in an article/saga. He describes the Marquis, Don Miguel, as a well educated, rich and virtuous hypochondriac. 

His heir, the resilient José Santiago, worked for the shipyard which was now used by numerous boats. On board one of these, he and his crew disappeared suddenly off the coast of Coquímbo. Don Miguel Antonio, the fifth Marquis, was as brave at fighting as a bull. In spite of his brief lifespan, he became famous for two reasons: for having killed a mutinous African-American soldier and for the strange handwriting on his written documents which he signed as hamor hinfeliz, hantonio (Hunhappy Hlove Hantonio). He fell into ruin as a result of his obsession with women and reproduction. 

Don José Miguel, his son, was a diligent lawyer who patiently rebuilt the family fortune and drew up the first official boundary lines of the The Pullally Estate. The famous Manuel José reflected  the virtues of his ancestors and other outstanding members of the Republic. He was creator of the autonomous districts and one of the main streets in Santiago is named after him.

In 1840, the Member of Parliament, Bernardo Toro, presented the first map of Papudo, designed by the engineer Lemuhot; by then it was a city of an incredible 870 blocks. 

En 1855, the Governor of Aconcagua, Francisco Bascuñan, supported a plan drawn up by the engineer Centeno, which proposed a smaller population, of 170 blocks.  Even though a law was passed, a scientist at that time called Amado Písis, described the port a few years later as: located on private property, it is nothing more than a few miserable shacks and a recently constructed building which serves as a warehouse for the products which are exported to Valparaíso. Three quays were built over consecutive years.

From 1860 onwards, families from Santiago and Valparaíso start to spend the summer months in the houses, shacks or warehouses which were habitable, living in modest, patriarchal conditions from December to March. Amongst these forerunners, one remembers the painter Onofre Jarpa walking through the hills with his easel and Monsignor Ramón Ángel Jara who, in his eloquent outbursts was inspired by the sea.

In1865 another historical event took place in the bay: on 26th November the Naval Combat of Papudo began, in which the corvette Esmeralda, captained by Williams Rebolledo and accompanied by Officers Prat, Condell, Latorre and Uribe, captured the Spanish gunboat Covadonga, which had been blocking the Chilean coast and had earlier bombed Valparaíso. This incident provoked the suicide of the Spanish Admiral Pareja.

It is not until 1897, when Papudo, the real seaside resort is born. It was officially founded by Fernando Irarrázabal Mackenna, Don Manuel José’s eldest child; he drew up the plan of a small population, sold plots of land and built a large chalet. The estate agent Javier Ortúzar acted as intermediary during the sale, and reserved places such as the Town Square, Don Fernando’s houses, the parish, a future hotel complex and the future train station. The latter arrived with pomp and ceremony during the 1910 Centenary year, when they also built a secondary track and a steel quay, transforming Papudo into a port, seaside resort. 

In 1885 Ignacio Garcés implemented a new plan for Papudo which was later amended in1897, when spaces of public buildings were defined.

In 1906 the metallic dock was built and the port was created. In 1912 the rapid growth of the port produces a rise in population and as a result, the Running Water Service is established. In 1917 the engineer Enrique Vergara, implements a plan for Papudo which represents the start of the town`s division into lots. On 14th May in1927 the Town Council is founded and the port gains independence from La Ligua. In 1930 Papudo is included in the country’s telephone network. On 21st May, 196, Papudo’s First Company of Firemen is founded. In 1967 a terrible storm, which devastated the central coastline of the country, completely destroyed the main quay.