While in the treaty of Río Bueno the Spanish had been allowed to form haciendas north of Bueno River, establishing that watercourse as a de facto frontier, the Spanish now went on to set up haciendas south of it.
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This caused alarm among the Huilliche of the Llanos de Osorno (flatlands of Osorno) who decided to ally with the Huilliche Aillarehues of the Río Bueno valley and those around Lake Ranco to the north and ask for the intervention of the Governor of Valdivia, Mariano Pusterla.
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The treaty also allowed Spaniards to settle and form haciendas north of the Bueno River.
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