In 1926, during the United States occupation of Nicaragua "Las Segovias" became the center of the guerrilla warfare led by Augusto César Sandino, who established a network of espionage agents and collaborators from the local population. In 1933, during the negotiations for peace in the region, Sandino asked newly elected president Juan Bautista Sacasa to create a large autonomous department covering the area of "Las Segovias". Sandino's plan would have allowed him to administer the department and manage the civilian and military authorities. The government rejected the plan, giving the rebels only a small colony on the banks of the Coco River, where the former troops were allowed to farm.