It was founded in 1579 by Spanish miners who worked the silver and gold mines of the area.
The municipality has borders at north with the Central District, at south with the municipality of Reitoca and Sabanagrande, at the east with the municipalities of Santa Ana and Sabanagrande and at west with the municipalities of Reitoca and Lepaterique. It is situated in a small plateau in one of the hills of Cerro de Hule, at the base of the Payaguagre mountain.
The municipality has 12 recognized villages:
- Ojojona (the main village)
- El Aguacatal
- El Círculo
- El Jícaro
- Santa Cruz
- Surcos de Caña
- Cofradía de Jícaro
- Cofradía de Güerisne
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