Teodoro Schmidt commune is located at the west side of La Araucanía Region, 72 kilometers from Temuco, in the Province of Cautín. Its population comprehends 15,504 inhabitants approximately (Census 2002) and 60% live in the rural area and other communes of this region sector, it has a large presence of Mapuche population. It extends over an area of 649.9 km2. It is bordered to the north by the commune of Saavedra, Carahue and Nueva Imperial; to the east with the commune of Freire; to the south, with the communes Pitrufquen and Tolten, which are separated by Tolten River (except at the southwestern tip); and to the west with the Pacific Ocean and has three populated centers: Teodoro Schmidt, Barros Arana and Hualpín.

This commune was created on January 12^th, 1981 named after German engineer recognized in the regional history for projecting and chart the streets of Temuco and drawing the coastal railway line. The railway stations were located 15 km away from each other and were: Martínez de Rozas, Barros Arana, Teodoro Schmidt, Hualpín and Toltén. The layout of the state railway line at Tolten station was completed around 1952.

This event pushed some families to quickly populate the places chosen to be railway stations, comprehending a primitive population of about 4 to 5 families. It is also important to highlight the significance of the German and Italian foreign colonization, as well as religious congregations.