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The pre-Hispanic settlement of Teotenago was built on the plateau of Cerro Tetepetl, mainly occupying the eastern part. To build the ancient city on a rocky prominence like this, it was necessary to modify the plateau with artificial infill and terraces, which formed part of a group of architectural structures organized around the plazas.

It is thought that the first groups who settled in the Valley of Toluca, as well as in the vicinity of Teotenago, had Otomi roots and were present on the lower slopes of the hill from 650 to 750 AD. The presence of people from Teotihuacan, who began as migrants to this area from the Valley of Matlatzinco, had an influence on the customs and daily life of the original inhabitants, as well as on the architecture, sculpture, pottery and arts generally.

Little is known about the first group of inhabitants who settled Teotenago. As they can be considered the founders of this city and religious center they have been given the name Teotenancas, and they exercised control of the city until 1200 AD, when it was invaded and conquered by a group of Chichimecs and Matlatzincas. Subsequently important defensive works were completed, remaining under Matlatzinca control until 1474. The final stage of occupation took place with the military expansion of the Aztecs.

The name of this settlement is attributed to the presence of a wall made from stone as part of the abovementioned defensive system. The glyph which represents the city has a half solar disk on the lower part, and above it there are precisely three sections of wall.

Although the existence of this archeological site was known through various historical sources and references by witnesses, it was not until 1971 that the Teotenago Project began under the direction of the archeologist Román Piña Chan. This project concluded in 1975 and after that date the interventions have been limited to minor maintenance works to the area open to the public.