more history

Indians were the first inhabitants of what is now Panama. Spaniards conquered the Indians during the 1500's and ruled Panama for about 300 years. In 1821, Panama broke away from Spain and became a province of the nation of Colombia. In 1903, it rebelled against Colombia and became an independent nation.

The United States played a major role in Panama's history. It built the Panama Canal, which was completed in 1914. Many U.S. civilians and soldiers then moved to Panama to guard, operate, and maintain the canal. They lived in a special area bordering the canal called the Panama Canal Zone. The United States took control of the canal and the zone in exchange for payments to Panama. In 1977, Panama and the United States signed a treaty that resulted in the transfer of the Canal Zone to Panama in 1979. Also as a result of the treaty, the United States transferred control of the canal to Panama on Dec. 31, 1999. For details on the canal and the Canal Zone.