Before 1565, the highest court of Chile was thejusticia mayor, whose sentences were appealed before theRoyal Audiencia of Lima. In 1560 local authorities formally requested the president of the Audiencia of Lima for the creation of anaudiencia for Chile. It was argued that it would serve to control the actions of thegovernors of Chile, improve royal treasury's collection of revenue and hasten the end of theArauco War.
In 1565 KingPhillip II ordered the creation of a Chileanaudiencia in his decree of May 18. Theaudiencia had fouroidores, one of them serving as president; afiscal or public prosecutor; and the related subordinate officials, such as analguacil mayor (greater bailiff) and his lieutenants, notaries public, an interpreter, a chaplain and a doorman.Melchor Bravo de Saravia was appointed President of the Audiencia with a salary of 5,000 pesos.
In cases when the office of the governor of Chile went vacant, theoidores of the Audiencia were to assume administration of the government. Due to various problems in its operation, the Audiencia was dissolved less than a decade later by the royal decree of August 26, 1573, which took effect on June 25, 1575, a month after it received notification of the decree. After it was dissolved the judicial functions of the Audiencia were entrusted to the lieutenant governor andcapitán general of Chile.
| Preceded by New creation | President Melchor Bravo de Saravia 1565-1575 | Succeeded by disbanded |