In 1792 the Huilliches were defeated by a Spanish army. A peace parliament and treaty was signed in 1793. In the treaty Huilliche property was recognized by the Spanish.
Sociedad Stuttgart, a society established in the 19th century to bring German settlers, purchased about 15 000 km2 under fraudulent conditions from Huilliches in the Precordillera east of Osorno. This purchase was later ratified by in Chilean courts and serves to illustrate how Chilean authorities ignored its own legal order that guaranteed Huilliche property.
As result of the establishment of Chilean and European settlers, including Germans, around Bueno River and Osorno Huilliches living in the Central Valley migrated to the coastal region of Osorno. The economy of Osorno turned in the 1920s towards cattle farming, with land ownership concentrated among German immigrants many Huilliches became peasants of large estates (latifundia).
^ abcConcha Mathiesen, Martín (1998). Una mirada a la identidad de los grupos huilliche de San Juan de la Costa (Thesis) (in Spanish). Universidad Arcis.
^Vergara, Jorge Iván; Gundermann, Hans (2012). "Constitution and internal dynamics of the regional identitary in Tarapacá and Los Lagos, Chile". Chungara (in Spanish) (University of Tarapacá) 44 (1): 115–134.|accessdate= requires |url= (help)