According to the oral tradition maintained by the inhabitants of Olmedo, the páramos were full of cattle and there was an abundant agricultural production, especially located in the plains of San Pablo Urco, from where food was transported, “passing a series of vicissitudes”, to commercialize them in the towns of Cayambe, Guayllabamba and Quito. The main agricultural and cattle ranch was “Pesillo”, in which the villagers were subjected to harsh exploitation because, according to the natives, “we lived close to each other and had to work for the favor they did us when they lent us a piece of land to live on” (huasipungo).
The activities prior to the parochialization began on January 5, 1901; the settlers considered the need to grant life and independence to the jurisdiction of Pesillo, as a fundamental point for its development. From the beginning of this initiative, the name of the illustrious guayaquileño, José Joaquín de Olmedo was considered to baptize the nascent parish.
The procedures for the government to approve the ordinance of the Municipal Council of Cayambe that creates the parish Olmedo, lasted 10 years, until September 26, 1911 when the community of Pesillo was decreed and registered as Olmedo Parish.