<P> Gold mining was an early draw for Spaniards, who directed indigenous labor to its extraction, but did not continue beyond the mid-sixteenth century . Over the long run, ranching and commerce were the most important economic activities, with the settlement of Tehuantepec becoming the hub . The region's history can be divided into three distinct periods, an initial period of engagement with Spanish colonial rule to 1563, during which there was a working relationship with the Zapotec ruling line and the establishment of Cortés's economic enterprises . This early period came to a close with the death of the last native king in 1562 and the escheatment of Cortés's Tehuantepec encomiendas to the crown in 1563 . The second period of approximately a century (1563--1660) saw the decline of the indigenous entailed estate (cacicazgo) and indigenous political power and development of the colonial economy and imposition of Spanish political and religious structures . The final period is the maturation of these structures (1660--1750). The 1660 rebellion can be a dividing line between the two later periods . </P> <P> The Villa of Tehuantepec, the largest settlement on the isthmus, was an important prehispanic Zapotec trade and religious center, which was not under the jurisdiction of the Aztecs . The early colonial history of Tehuantepec and the larger province was dominated by Cortés and the Marquesado, but the crown realized the importance of the area and concluded an agreement in 1563 with the second Marqués by which the crown took control of the Tehuantepec encomienda . The Marquesado continued to have major private holdings in the province . The Villa of Tehuantepec became a center of Spanish and mixed - race settlement, crown administration, and trade . </P> <P> The Cortés haciendas in Tehuantepec were key components of the province's economy, and they were directly linked to other Marquesado enterprises in greater Mexico in an integrated fashion . The Dominicans also had significant holdings in Tehuantepec, but there has been little research on these . However important the Marquesado and the Dominican enterprises were, there were also other economic players in the region, including individual Spaniards as well as existing indigenous communities . Ranching emerged as the dominant rural enterprise in most of Tehuantepec with a ranching boom in the period 1580--1640 . Since Tehuantepec experienced significant indigenous population loss in the sixteenth century conforming to the general pattern, ranching made possible for Spaniards to thrive in Tehuantepec because ranching was not dependent on significant amounts of indigenous labor . </P> <P> The most detailed economic records for the region are of the Marquesado's ranching haciendas, which produced draft animals (horses, mules, burros, and oxen) and sheep and goats, for meat and wool . Cattle ranching for meat, tallow, and leather were also important . Tallow for candles used in churches and residences and leather used in a variety of ways (saddles, other tack, boots, furniture, machinery) were significant items in the larger colonial economy, finding markets well beyond Tehuantepec . Since the Marquesado operated as an integrated enterprise, draft animals were used in other holdings for transport, agriculture, and mining in Oaxaca, Morelos, Toluca, and Mexico City as well as sold . Raised in Tehuantepec, the animals were driven to other Marquesado holdings for use and distribution . </P>

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