The new town was founded on the west bank of the Ozama River. The townspeople were relocated shortly thereafter the devastation of the first foundation, alongside many settlers whom arrived in the entourage accompanying Governor Ovando. ￼The city was planned using a checkerboard street plan known as Damero, a schematic used for the first time ever by the Spanish settlers. ￼The proven military experience by the Commander of the Order of Alcántara and Governor Frey Nicolás de Ovando, linked the implemented scheme with the precedents of the Santa Fé military settlement, where the Málaga siege and the Citadel of Alhambra were organized, therefore regaining Granada and unifying the Kingdom of Ferdinand and Isabelle, which extended all the way to south of the peninsula.
The Elizabethan scheme, at the time, was implemented as practice to the theoretical military camp designs dating back to Imperial Rome. ￼Regardless of the applied Damero schematic, the so-called Ciudad de Ovando was an imperfect outline grid. Its ample streets and the forecast for the new town had attracted the attention of contemporary chroniclers, who gave favorable opinion about the metropolis and even compared it to urbanized European cities. When Ovando ordered developing the city, it was determined where the future location of the main administrative buildings and other would be. So the space for the center quadrant, destined for the Cathedral was then allowed. ￼ However, Ovando began developing from the eastern border, proposing that there be built the Fortress, the Casa de Contratación (*House of Trade) and especially the whole set of stone houses, by master masons. ￼With materials and tools brought in to build their decent homes, the prototypes for the new residences worthy of the new officials and town residents were hoisted. The houses on Calle Las Damas, asides being the first homes built using stone and solid materials, were carefully designed and well built, making this street an example of what is still ideally posed as the future city. ￼At this time, the purpose was set for using the rent earnings from six of these houses to support the construction and upkeep of the San Nicolás de Bari Hospital, the first of the New World, sponsored by the Governor.