The settlement of Villa Imperial de Carlos V (now the city of Potosí) in Bolivia is founded after the discovery of huge silver deposits in the area.

Potosí, known as Villa Imperial de Potosí in the colonial period, is the capital city and a municipality of the Department of Potosí in Bolivia. It is one of the highest cities in the world at a nominal 4,067 m. For centuries, it was the location of the Spanish colonial silver mint. A considerable amount of the city's colonial architecture has been preserved in the historic center of the city, which—along with the globally important Cerro Rico de Potosí—are part of a designated UNESCO World Heritage Site.

Bolivia, officially the Plurinational State of Bolivia, is a landlocked country located in central South America. The country features diverse geography, including vast Amazonian plains, tropical lowlands, mountains, the Gran Chaco Province, warm valleys, high-altitude Andean plateaus, and snow-capped peaks, encompassing a wide range of climates and biomes across its regions and cities. It includes part of the Pantanal, the largest tropical wetland in the world, along its eastern border. It is bordered by Brazil to the north and east, Paraguay to the southeast, Argentina to the south, Chile to the southwest, and Peru to the west. The seat of government is La Paz, which contains the executive, legislative, and electoral branches of government, while the constitutional capital is Sucre, the seat of the judiciary. The largest city and principal industrial center is Santa Cruz de la Sierra, located on the Llanos Orientales, a mostly flat region in the east of the country with a diverse non-Andean culture.

Cerro Rico, Cerro Potosí or Sumaq Urqu, is a mountain in the Andes near the Bolivian city of Potosí. Cerro Rico, which is popularly conceived of as being "made of" silver ore, is famous for providing vast quantities of silver for the Spanish Empire, most of which was shipped to metropolitan Spain. It is estimated that eighty-five percent of the silver produced in the central Andes during this time came from Cerro Rico.