Aguas Calientes, also known as Machu Picchu pueblo, was founded in 1901 during the construction of the railroad between Cuzco and Santa Ana. Approximately 68 miles from Cuzco, it was initially a railroad camp that went by the name of Maquinachayoq.

This camp became a headquarters for the railroad's machinery and heavy equipment operations and many of the workers based there ended up settling in the town permanently with their families. It was in 1928 when the railroad first reached Maquinachayoq on its way to its final destination at Chaullay Station, enabling regular passenger and cargo train service between Cuzco and Santa Ana.