A few years following the discovery of the isthmus of Panama, Balboa went through the Darien jungle and discovered an ocean that was until then unknown to the Europeans, the American Pacific Ocean, named by them the South Sea. The first city built by the Spanish conquerors in the coast of said sea in 1619 was Panama, later invaded, looted and destroyed by the pirate Henry Morgan in 1671. The city was abandoned and its inhabitants were relocated in another city some kilometers to the West. From that old city remain the ancient architecture of the cathedral, convents, monasteries, public buildings and a bridge, all of them built from stone. Panamá La Vieja has been declared by the Unesco as Patrimony to the Humanity. Tourists may visit the ancient stone buildings and walk through the ancient stone streets which are currently covered by grass. It will feel like a very ancient voyage.

The other historical site of the capital city is the colonial neighborhood known as Casco Antiguo, the place where the new City of Panama was built in 1673. The neighborhood possesses all the color and feeling of the colonial epoch, with thick rock walls, roman arches, and ornamental balconies. Along its narrow stone streets visitors can see many restaurants and outdoors cafeterias as well as shop fine Indian and colonial workmanship. It also features half dozen catholic temples which contribute to the spiritual aspect of this neighborhood, among them the Iglesia Catedral Metropolitana, the Iglesia de La Meced with its exquisite Baroque façade and the Iglesia de San José with its legendary altar made entirely of gold, a baroque jewel rescued from the looting of the pirates in 1671. The narrow streets of this neighborhood have encouraged with the passing of the time many urban legends and stories of enigmatic deeds performed in other times.