On August 13, 1868 Atuntaqui was partially destroyed by an earthquake that left thousands dead and homeless. After its reconstruction and its subsequent development, the textile factory, which set up an hydroelectric plant on the banks of the Ambi river and the arrival of the railway in the town of Andrade Marín, located 2.5 km east of Atuntaqui, became especially important. Since 2000, it has been noted for its textiles and crafts. Every year the Atuntaqui Expo takes place here in the Carnival holidays, a day on which the city hosts a large number of visitors (140,000 visitors in the 2009 edition), who come to make purchases.