San Martín de los Andes was founded in 1898 after the Argentine General, Rudecindo Roca, created a peaceful accord with the native Cacique Curruhinca tribe. Roca had been tasked with dividing the Andes and create a more defined border with Chile and San Martín became part of that mission.

San Martín's economy was originally agriculturally based; cattle, timber and products such as fruits, vegetables and animal feed, sustained the area.
Starting in 1937, as the Argentine government began to develop Parque Nacional Lanín, large tracts of land came under official protection. Gradually, the effort encompassed land that had once been used for grazing, timber harvesting or homesteading.
In response, the municipality instigated trail systems, organized villages and started promoting tourism. Some 100 years later, both the locals and the area are still benefiting from the change. San Martín now has a robust economy and a thriving natural environment.