King Ferdinand (Queen Isabella having opposed the exploitation of natives but dying in 1504) authorizes Ponce de León in 1508 to conquer the remaining Tainos and exploit them in gold mining.

Around this time, Ponce de León marries Leonora, an innkeeper's daughter.

They will have three daughters (Juana, Isabel and Maria) and one son (Luis).

The large stone house Ponce de León orders built for his growing family still stands today near the city of Salvaleón de Higüey.

As provincial governor, Ponce de León has occasion to meet with the Taínos who visit his province from neighboring Borinquen (Puerto Rico).

They tell him stories of a fertile land with much gold to be found in the many rivers.

Inspired by the possibility of riches, Ponce de León requests and receives permission from Ovando to explore the island.

Ponce de Leon’s first reconnaissance of the island is usually dated to 1508 but there is evidence that he had made a previous exploration as early as 1506.

This earlier trip had been done quietly because the Spanish crown had in 1505 commissioned Vicente Yáñez Pinzón one of three Pinzon brothers to accompany Columbus on his first expedition, to settle the island.

Pinzón had not fulfilled his commission and it had expired in 1507, leaving the way clear for Ponce de León.

His earlier exploration had confirmed the presence of gold and had given him a good understanding of the geography of the island.

In 1508, Ferdinand II of Aragon gives permission to Ponce de León for the first official expedition to the island, which the Spanish then call San Juan Bautista.

This expedition, consisting of about fifty men in one ship, leaves Hispaniola on July 12, 1508 and eventually anchors in San Juan Bay, near today's city of San Juan.

Ponce de León searches inland until he finds a suitable site about two miles from the bay.

Here he erects a storehouse and a fortified house, creating the first settlement in Puerto Rico, Caparra (named after the province of Cáceres, Spain, the birthplace of Nicolás de Ovando).

Although a few crops are planted, they spend most of their time and energy searching for gold.

Ponce de León decides to return to Hispaniola by early 1509.

His expedition has collected a good quantity of the precious metal but is running low on food and supplies.

The expedition is deemed a great success and Ovando appoints Ponce de León governor of San Juan Bautista.

This appointment is later confirmed by Ferdinand II on August 14, 1509.

He is instructed to extend the settlement of the island and continue mining for gold.

The new governor returns to the island as instructed, bringing with him his wife and children.

Significant changes are taking place in the politics and government of the Spanish West Indies even as Ponce de León is settling the island of San Juan.

On July 10, 1509, Diego Colón, the son of Christopher Columbus, had arrived in Hispaniola as acting Viceroy, replacing Nicolás de Ovando.

For several years, Diego Colón had been waging a legal battle over his rights to inherit the titles and privileges granted to his father.

The Crown regrets the sweeping powers that had been granted to Columbus and his heirs and seeks to establish more direct control in the New World.

In spite of the Crown's opposition, Colón had prevailed in court and Ferdinand had been required to appoint him Viceroy.

Although the courts had ordered that Ponce de León should remain in office, Colón had circumvented this directive on October 28, 1509 by appointing Juan Ceron chief justice and Miguel Diaz chief constable of the island, effectively overriding the authority of the governor.

This situation prevails until March 2, 1510 when Ferdinand issues orders reaffirming Ponce de León's position as governor.

Ponce de León then has Ceron and Diaz arrested and sent back to Spain.

Ponce de León, back on his island, had parceled out the native Taínos among himself and other settlers using a system of forced labor known as encomienda.

The Spanish colonists had at first been well treated by the island’s Arawak inhabitants, but relations with the locals had quickly deteriorated when the Spaniards force the natives to grow food crops and mine for gold.

Many of the Spaniards treat the Taínos very harshly and newly introduced diseases like smallpox and measles take a severe toll on the local population.

A series of minor uprisings culminates in June 1511, when the cacique Agueybana II foments an island-wide revolt.

Ponce de León, informed of Agueybana’s plan, assembles one hundred and twenty Spaniards armed with crossbows and arquebuses, marches through the forests, and attacks Agueybana and his forces while they sleep, killing hundreds of Arawaks.

Agueybana and other escapees from the violence attack the Spaniards several days later but are defeated in battle, during which Agueybana himself is killed.

The surviving Arawak warriors retreat, some concluding peace with Ponce de León, others fleeing to neighboring islands to join forces with their former enemies, the Caribs.

The political struggle between Colón and Ponce de León continue.

Ponce de León has influential supporters in Spain and Ferdinand regards him as a loyal servant.

However, Colón's position as Viceroy makes him a powerful opponent and eventually it becomes clear that Ponce de León's position on San Juan is not tenable.

Finally, on November 28, 1511, Ceron returns from Spain and is officially reinstated as governor.