The encomienda system provided for New Spain a source of labor for mining, agriculture, and other economic activities. The system was based on the granting of encomiendas, or grants of land and labor, to Spanish settlers and conquistadors. In return for these grants, the encomenderos were required to provide religious instruction to the indigenous people and to protect them from exploitation.
The encomienda system was widely implemented during the early colonial period and remained a major source of labor and wealth for the Spanish colonists. It was officially abolished in the 18th century, but its effects can still be seen in modern-day Latin America.