Tepache, founded in 1678 under the name of Nuestra Señora de San Joaquín y Santa Ana de Depache. The location was an Opata settlement located in a small valley about one league ( 2.594 miles) long. The word Tepache comes from the Opata language and means, according to some, "place of beautiful women". Deposits of Silver were discovered by the Spanish in the vicinity of Tepache, and worked beginning in 1660. Among the mines worked at Tepache Arroyo were Nacatovori, Lampazos, Las Guijas, Santo Domingo, and Coronilla (none of the mines remained active by 1764). Tepache was visited on January 8, 1686, by mining inspector D. Gabriel de Isturiz, at which time it had 142 families, and 388 residents. Tepache was incorporated as a municipality in 1932.
Agriculture and livestock raising are the main economic activities.
Water infrastructure in support of agriculture includes 26 dams, and 85 wells. There is an area of 115 hectares of land supported by an irrigation channel, with a length of 10.4 km., with 4.2 km. of the length in lined channel. There are also 882 hectares of temporary cultivation, and 551 hectares of mixed or medium irrigation. Agricultural production is for domestic consumption, and to support livestock. The major crops under cultivation include maize, beans, wheat, potato, sweet potato, chili, and various fruits. Other cultivation is pasture for livestock feed.
Livestock Raising is defined as providing the backbone of the economy for the municipality. There were 13,016 head of cattle in 2000. Production of pigs and goats is minimal.
The municipality is located within the Malpais ("Bad Country") volcanic zone, with huge rocks, canyons, and hills of dark stone, covered by abundant vegetation.
The volcano Cerro Blanco, a natural cone 7 kilometers south of Tepache, is visited by domestic and foreign tourists, as well as by geology students.
La Gruta Profunda is a Cave located in the Malpais, a few kilometers from town, and is surrounded by canyons, and has within it the Tapón Sifón, a deep pool of blue-green water.
El Pantano is another area visited by residents and visitors. It is a swampy area located in the mountains about 8 kilometers from the town.
The City Council consists of a municipal president, a trustee, three general aldermen, and two aldermen providing proportional representation of the population.