The Republic Square is central to the city and puts an end to the main avenue of Valdivia, Picarte Avenue, and keeps a close proximity to the river through the Libertad street-walk.

Since the foundation of the city of Valdivia (1552), the Republic Square has always remained in the same place. As usual in colonial times, in front of the square were localized the buildings that housed the political power (Intendency), spiritual power (Cathedral) and the judiciary. The square used to be called Square of Arms due to the common practice of being the place to safeguard the weapons of the military bodies. The name it bears today is because in 1820, after the capture of Corral, Lord Cochrane found the country was already incorporated into the Republic. The Republic Square is the only under that name in the country. The Republic Square, although outdated by the growth of the city, has been the center of the city where the most important civic and religious ceremonies took place.

This photo from 1858 shows to the left the crossroad between the streets Camilo Henríquez and Picarte, and in front of the square is Maipú street where at present you can see the Prales building. In the center of this square there is a circular garden enclosed by a wooden fence. The central section shows four statues as vases representing the activities of trade, industry, science and arts. It also had four three-light tallow candelabra each and a carousel of cast iron and a board-stage for musicians. Here we can see some details of the square at it looked once, which was the main promenade of the city. It was the center of urban life, the scene of festivals and carnivals, an informal market center and focal point of the main symbols of faith and civil and religious power.

In 1904, the fire started in the tailor shop Russ caused the burning of several buildings and people took refuge in the square. In 1907 there was an earthquake that destroyed several buildings, and the people again took refuge in the square. On December 13, 1909 occurred a fire larger than that of 1748, which wiped out the city destroying entirely 18 blocks of buildings. It started at 00:30 AM of that day in the first block of Picarte street near no. 343, the south wind carried the fire into the square, where it grew at an enormous size reaching 18 blocks by 7:00 AM. By noon every 3- and 4-story building on the waterfront along 4 blocks had burned. The fire department lost all its gear, needing the help of the two nearby cities, Temuco and Osorno, along with army troops. The losses included colonial viceroy houses, major banks, hotels, schools, the Intendency, the newspaper, the diocese and the parish church (Cathedral). In this so called "The Great Fire", most of the affected were Valdivia's wealthiest sector. This led to the dissapearance of the urban design of Valdivia maintained since 1797 (city map originating from the demolition of the old wall or "fence" that protected the city). The insurance companies had to pay more than 12 million pesos of the time, two days later President Pedro Montt and the Minister of the Interior, Ismael Tocornal, arrived to the city.

Then a new revival of an energetic city took place, with a new face, especially oriented to the industry and trade, activities that grew in geometric progression, culminating again in 1960 with another disaster of proportions, resulting this time from nature and its hidden power, and with a great impact on the city.

The city celebrated for many years the anniversaries in the square, which were in charge of the Police Force Band; today is the meeting point of various musical groups. The square is used as a center for major holidays, civic and religious activities, such as the national independence holidays, gatherings after mass, school and fire department parades, and meetings of authorities; also hosts other expressions or activities such as skaters, some college events like exhibitions and speeches, break dancers at the Odeon, or for demonstrations or protests by workers and students.

Around the streets Maipú and Pérez Rosales the major pedestrian and vehicular circulation occur, affecting the activity within the perimeter of the square, where the trade flow of these streets is not directed to it, but outwards. The greatest movement in the square is the passage of people between the main street, Picarte Ave., and Libertad street-walk which directs the flow to the river, where the square engages as the mediator between these two streets. It has areas of gardens with ancient baswoods, perimeter benches, 2 pools and a central Odeon, at the corner of Maipú and Camilo Henriquez streets is the first military monument.