It was here, in 1535, that Spanish conquistador Francisco Pizarro founded Lima. All the important colonial institutions were established around the Plaza and remain today as part of the historic center: the Cathedral, the Parroquia del Sagrario (Parish of the Sacristy), Palacio Arzobispal (Archiepiscopal Palace), the Municipality and the Palacio de Gobierno.
The large bronze fountain in Plaza dates from 1651. The Act of Independence of Peru took place here in 1821. Few people know that Pizarro held the first bull fight here. The Plaza was also used to execute those condemned by the Spanish Inquisition.