In February 1789 the Treaty of Río Bueno was signed between Huilliche chiefs and colonial authorities. This treaty averted invasion from Chiloé, and gave the Huilliches of Osorno support from the Valdivia authorities against raids by the Aillarehue of Quilacahuín. At that point the Huilliches offered to facilitate the new Camino Real and to allow Spaniards to reoccupy Osorno, a city that had been abandoned in 1602. In 1792 O'Higgins rebuilt Osorno, and as a reward was created 1st Marquess of Osorno by King Charles IV in 1796.
