Although it was not until 1968 that Las Terrazas was destined to be a sustainable development community project, the history of the region dates back to the pre-Columbian era.

The first inhabitants of the area were identified as Mesolithic groups, particularly aboriginals Ciboneyes Preagroalfareros. These groups had a degree of socio-economical development related to an adaptable economy (adapt the nature's reserves for survival), later mastering hunting, fishing and fire making. The aboriginals of the area lived in caves where many of the pictographic works still can be found.

At the beginning of the XVIIIth century, many descendants of the Canaries and the peninsula who were specifically dedicated to the culture of the Tobacco Corojo, an endemic variety characterized by the exquisite great leaf used for the Habano's final envelope settled in the area. The low remuneration of this work together with the establishment of the Law on the monopoly of tobacco (only farmers could sell the leaf to Spain at very low prices) determined the total absence of the economic evolution of the zone.

At the beginning of the XIX century arrived the first French landowners, forming therefore an important economy based on the culture of coffee. Witnesses of this era are 50 ruins of great properties that were dedicated to the culture of this coveted grain. The most important one called Buena Vista was totally rescued from its ruins and converted into a pleasant restaurant from which a magnificent view of the Sierra del Rosario can be appreciated.

Starting with the triumph of the Cuban Revolution, a development plan for the Sierra del Rosario region founded the Community of Las Terrazas that became a living proof of sustained development. The community was structured as a miniature city located in the narrow valley by the San Juan Lake. Of great architectural value, it was designed according to both the constructions and the beautiful landscape and relief and taking into account the basic necessary installations for a complete urban functioning.