In 1878 this street took the name of La Paz at the end of the Carlist Wars (the third Carlist War had ended in 1876).

The idea of a road that would connect the Puente del Mar with the Plaza del Mercado arose in 1868, with the demolition of the convents of Santa Tecla and San Cristóbal. The street, which was then called the street of the Revolution, advanced very slowly and with opposition from the neighbors. In principle it was going to be 20 to 25 meters wide, but it stayed at 16 meters. In 1883 the complete project of the street was approved, but its total opening was not achieved until 1902.

In the early years of the 20th century it became the luxury center of the city, with its shops, restaurants and hotels. Salons such as the Ideal Room, the Munich or the Café de la Paz stood out.

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