This is where the Casas Reales (Royal Houses) were originally located, which began construction in 1603.

Antonio Rodríguez built the current palace in the last century, which was known at one time as La Lonja or El Parián. Ignacio Montes de Oca y Obregón, the bishop of San Luis, acquired it to turn it into an episcopal residence. During this period, it was significantly embellished and became a true palace.

During one of the incursions of the revolutionary forces into the city, the palace was looted and confiscated, resulting in the loss of most of its treasures, including the prelate's rich library. In 1915, the building came under the ownership of the municipal government.

It has a two-level quarry stone facade with a monumental arcade forming an angle. On the first level, there are semicircular arches supported by pillars. On the second level, there is a continuous balcony, rectangular windows, and a richly decorated frieze.

Inside, there is a square courtyard with a three-centered arch arcade on the first level and a double-ramp staircase.

The ceiling of the council chamber is adorned with painted panels depicting mythological and Christian themes, works by the Italian painter Erulo Eroli.

The landing of the grand staircase features a beautiful stained glass window with the coat of arms of the city of San Luis Potosí. 

The building has witnessed significant historical events. Some notable figures who have resided there include Calleja, Iturbide, Santa Anna, Miramón, and Juárez.