In 1522, the first Spaniards entered the region of what would become known as Nicaragua. Gil González Pereira with a small force reached its western portion after a trek through Costa Rica. He proceeded to explore the fertile western valleys and was impressed with the Indian civilization he found there. He and his small army gathered gold and baptized Indians along the way. Eventually, they so imposed upon the Indians that they were attacked and nearly annihilated. González Dávila returned to his expedition's starting point in Panama and reported on his find, naming the area Nicaragua. However, governor Pedrarias Dávila attempted to arrest him and confiscate his treasure. He was forced to flee to Santo Domingo to outfit another expedition.
Córdoba apparently came with the intention of colonization. In 1524, he established permanent settlements in the region, including two of Nicaragua's principal towns: Granada on Lake Nicaragua and León east of Lake Managua. But he soon found it necessary to prepare defenses for the cities and go on the offensive against incursions by the other conquistadores.
The inevitable clash between the Spanish forces devastated the indigenous population. The Indian civilization was destroyed. The series of battles came to be known as The War of the Captains.[4] By 1529, the conquest of Nicaragua was complete. Several conquistadores came out winners, and some were executed or murdered. Pedrarias Dávila was one such winner. Although he lost control of Panama, he moved to Nicaragua and established his base in León. olony.