The town dates back to 1750 when two Spanish colonies existed in the area. The town's title was given on 14 September 1848 when the name "La Paz" was officially recognized by a decree from Comayagua and in 1861 it was given the status of a city and in 1869 it was made a departmental seat.
The festival of the "Virgen de los Dolores" is held in November.
The local cultural center is located in a 19th century house and has a collection of paintings and cultural objects that date to the 19th century period. It also organizes activities throughout the year.