The annexation of the Guanacaste region by Costa Rica was significantly influenced by the historical, cultural, and political context of the time. Previously part of the province of Nicaragua during Spanish colonial rule, localization of governance turned complex as Central America sought independence from Spain. Following the regional independence from Spanish control in 1821, various provinces faced internal struggles over governance and identity. Guanacaste, with its distinct cultural identity and a predominantly Costa Rican populace, found itself at a crossroads between Nicaragua and Costa Rica. This region desired affiliation with Costa Rica, feeling neglected under Nicaraguan rule. Local leaders, advocating for their communities’ interests, sought to consolidate their identity as part of the Costa Rican nation, which had begun defining itself post-independence. In 1824, Costa Rica’s government formally incorporated Guanacaste, effectively fulfilling the aspirations of its inhabitants while enhancing Costa Rica's territorial claims and agricultural potential in the process. This annexation was a strategic move that opened the door for further development in the area and created new dynamics within the Central American context.

In the years leading beyond this annexation, Guanacaste would significantly contribute to the agricultural and economic growth of Costa Rica, particularly due to its fertile lands that were well-suited for cash crops. The impact of this annexation created a sense of regional pride and national identity, strengthening ties not only with the local population but with neighboring regions as well. The event had long-term repercussions that shaped the political relationships between Costa Rica and Nicaragua, building a narrative of territorial ambition that would echo through subsequent years.