From the copious information which reached the court of his Majesty concerning the affairs of the Philippines, and of the great need which they experienced of being supplied with settlers and people to occupy them, for the better ordering of this, and at the least cost to the royal exchequer, an arrangement was made with Don Gronzalo Ronquillo de Peñalosa, a native of Arevalo, and alguazil-mayor of the high court of Mexico, who was at that time at the court, that he should have the government of the Philippines for life, and should take with him six hundred men from the kingdoms of Castile, married and single, to the Philippine Islands; his Majesty, at the same time, would grant him some assistance and facilities for this, and other favours, as a reward for this service.

Don Gronzalo prepared for the voyage, and having collected his people, and got them embarked in the port of San Lucar de Barrameda, when the fleet went out to the bar, one of the ships in his company was lost. He returned in order to repair his losses, and although he did not get as much as what he first started with, made his voyage to the mainland. At Panama he embarked his people on the South Sea, and set sail for the Philippines, where he arrived, and entered upon his government in the year 1580.

Don Gonzalo Ronquillo founded a Spanish town in the island of Panay, in Oton, and he gave it the name of Arevalo.