1610 construction and the Spanish colonial era
Spanish colonial authorities established Santa Fe as the capital of the Nuevo México province in 1610 — making it the second-oldest continuously-inhabited European-established settlement in the present-day United States, behind only St. Augustine, Florida. The Palace was constructed in the same year as the founding, originally as both a government building and a fortified residence for the Spanish governor. The building was constructed in the traditional adobe building style used throughout colonial New Mexico — sun-dried adobe brick walls several feet thick, viga-and-latilla ceilings, packed earth floors, and a hidden interior placita courtyard.
The Palace's location on the north side of the Plaza was strategically chosen. The Plaza itself functioned as the colonial military and civic center, and the Palace's position allowed the governor to observe and oversee both military activities and the daily commercial life of the town. The original building extended the full length of the Plaza's north side and was substantially larger than the structure visitors see today — portions of the original Palace were demolished and rebuilt across the colonial and territorial periods.
Spanish governors used the Palace through the 17th century until the Pueblo Revolt of 1680. The Revolt, organized by Pueblo religious and political leaders in response to nearly a century of Spanish colonial oppression, expelled Spanish forces from New Mexico for twelve years. Pueblo forces occupied Santa Fe and the Palace itself during that period, modifying the building's interior to serve Pueblo religious and civic needs. Spanish forces reconquered the territory in 1692, retook the Palace, and resumed colonial governance from the building through the remainder of the colonial period.