Tolhuin was founded on October 9, 1972 by Territorial Law No. 31. At that time Alejandro Agustín Lanusse was the president, Gregorio Lloret was the governor and Néstor Nogar was the mayor of Río Grande.
All of them were present at the laying of the cornerstone currently located in the intersection of Lucas Bridges and Luis Cardenas streets. Assigned by Territorial Law No. 72 the same year the current urban sector consisting of 54 square kilometers. In that year they began building the first 20 houses and the building of primary school.
On September 5, 1982, when it had about 250 inhabitants, was commissioned in the first municipal delegate of Tolhuin. Commune was declared in 1991, assuming the first elected Community Council on December 11 of that year. The population was 442 inhabitants, according to national census.
With the sanction of the Provincial Law No. 231 of June 1995 was created the Administration and City Council. Assume the first mayor of Tolhuin the December 11, 1995. According to the 1997 census the population was 968 inhabitants. It is currently estimated to reach 1,200.