Arango decided to set aside a portion of his farm so that all of the tenants could build their houses in a central location. He laid out a street plan including parks and the principal plaza, located one block from the main farm house. The sections went on sale on August 14, 1916, now considered the foundation date for the town. Within one week, 130 sections had been sold at a price of 20 pesos for each one. A competition was held to choose the name of the settlement. Although more than 1,000 names were suggested, the most popular choice was the original name of the farm.
In 1917 the settlement was elevated to the status of a corregimiento of Armenia. A census in that year showed there were 478 inhabitants (254 men and 224 women), including 45 married couples and 55 couples living together without being married.
The municipality of La Tebaida was created in 1953 with the separation of 85 kmĀ² from Armenia. The first mayor of La Tebaida was Felipe Santiago Mejia. He helped this town get
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