The Zapotecs established themselves in Huatulco.

This place served as a passage between the territories of Zaachila and Tehuantepec. When the Aztecs invaded this region, they called it Cuahtolco, which means "Place where wood is worshiped."

When the Spanish arrived in Huatulco, Hernán Cortes thought it would be a good base to reach Peru and the East.

Between 1526 and 1560, the new coastal town developed as a commercial center. In 1560, Acapulco's importance began to increase, and Huatulco became a place primarily visited by pirates.

In 1587, Thomas Cavendish created the legend of the cross. The pirate wanted to destroy the wooden cross located in front of the harbor, and his men tried to carry out his orders with axes, saws, and cannons; however, the cross remained intact. This was considered a miracle, and everyone questioned the cross.

According to the legend, the cross had been brought by a white and bearded man dressed in the fashion of his ancestors. Although the fame of the cross grew, the importance of Huatulco decreased over the years.

In 1983, FONATUR began the construction of the tourist development. This marked the beginning of growth in tourist infrastructure and its increasing reputation as a tourist destination.