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Although he had fixed upon St Jago for the capital of the kingdom of Chili, he determined upon establishing his own family at Conception; for which purpose he selected a pleasant situation for his own dwelling, reserving for himself the fertile peninsula between the rivers Andalian and Biobio, and resolved to ask as a reward for his services the two adjoining districts of Arauco and Tucapel, with the title of marquis: For, although these districts still remained in the possession of the Araucanians, he fully expected to be able to subjugate that valiant people in a short time.

In the year 1550, pursuant to the resolutions of the Araucanian confederacy, Aillavalu passed the great river Biobio, at the head of 4000 men, and boldly offered battle to Valdivia, who had advanced to meet him on the banks of the Andalian.

In consequence of these repeated calamities, the inhabitants established themselves on the 24th of November 1764 in the valley of Mocha, nine miles south from Penco, between the rivers Andalian and Biobio, where they founded a city to which they gave the name of New Conception.