A French-Spanish general born in South America, Jose de Villamil, began to promote the settlement of the islands. He saw the economic potential of the Galapagos Islands in harvesting Roccella gracillis, a lichen used to make dyes, and convinced the president of independent Ecuador to take over the islands.
The Ecuadorian government granted the general the right to settle on Floreana. The first inhabitants were soldiers who had participated in an attempted coup in Ecuador - the islands became a penal colony.
Villamil established a settlement center and brought 80 settlers who tried to harvest lichen, but without success. Later settlers raised sheep, sugar cane and vegetables. They even built a sugar refinery. The colonial administrators proved to be tyrants who exploited the settlers, causing recurring rebellions.
In 1900, a group of Norwegians settled in Santa Cruz.
