Licán Ray doesn’t have a precise date of foundation, since it grew naturally with the arrival of the colonists.

However, it was mentioned by name in the Land Registry of the Curator of Real Estate of Valdivia in 1944. It had been founded some time before by Don Francisco Jaramillo, who as well as being park warden, traded in leather, wheat and grain. The necessary steps having been taken to convert Licán Ray into a town, 80 hectares of land belonging to the ancient indigenous community of Loncopán were expropriated in the name of the state.

In 1952 a chapel and primary school were already in existence. Later on another college was created, which stood where calle Cacique Catriñi is located today.

At the beginning of this century, all of the land that today forms Licán Ray, like the slopes of the hills next to the lake, used to be a woodland of Nothofogus oblícua, predominantly formed of pellín, laurel and lingue trees. Other types of trees found there included the cinnamon tree, hazel nut tree, lleuque, mañío, ulmo, tepa, and others, including many murtilla and maui.

You can separate the evolution of Licán Ray into two stages. The first began with its foundation. From 1942 onwards, the recently founded town began to grow. As the plots were given away free, people from the surrounding areas came to settle there, and the town also benefited from the setting up of the State Firm of Railways.

This business maintained a permanent train service between the railway station and the hired-out land, which also acted as transport for passengers and post. With regard to the woodland areas, these were cut down. In 1946 the main wealth of wood had been used up. By cutting down too many trees too quickly, and thus depriving the town of the business that had given it life, decay began to set in and people began to leave.

After some years of stagnation, a brief resurgence came about as a result of a project to install a hydroelectric power station.

With the danger over, Licán Ray began to boom once again. During this phase of its development, a resort was created, adding tourist appeal to the town.

According to the censuses, there were 68 houses in 1960. In 1970 there were 533, and nowadays there are between 600 and 700 houses. More than two thirds of these are summer residences, so are only occupied during the summer months (December to the beginning of March). Although the houses are of different architectural designs, varying in size and finishings, they are mostly made of wood, and of one floor. The residents’ houses are modest, however their gardens are extremely well-exploited.

From 1965 Licán Ray began to grow as a tourist center, with more and more facilities for the visitor appearing each year.

In 1966 the Government designed a tourist town and sold and gave away sites on condition that holiday homes were built, thereby putting an end to urbanization.