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The successor of the Duke of Alburquerque entered Mexico on the 16th of September, 1660. Don Juan de Leyva y de la Cerda approached the colony with the best wishes and resolutions to advance its prosperity and glory. His earliest efforts were directed to the pacification of the Tarahumares, whose insurrection was still entirely unquelled, and whose successes were alarmingly disastrous in New Mexico, whither they advanced in the course their savage warfare. With the same liberal spirit that characterized his predecessor, he continued to be the zealous friend of those remote, frontier colonists, and, in a short time, formed twenty-four villages. It was, doubtless, his plan to subdue and pacify the north by an armed occupation.

In 1661 and 1662, the despotic conduct of the Spaniards to the Indians stirred up sedition in the south as well as at the north. The natives of Tehuantepec were, at this period, moved to rebellion, with the hope of securing their personal liberty, even if they could not reconquer their national independence. Spanish forces were immediately marched to crush the insurrection; but the soft children of the south were not as firmly pertinacious in resistance as their sturdier brothers of the northern frontier. More accessible to the gentle voices of an insinuating clergy, they yielded to the persuasive eloquence of the bishop Ildefonzo Davalos, who, animated by honest and humane zeal for the children of the forest went among the incensed tribes, and, by kindness, secured the submission which arms could not compel at the north. For this voluntary and valuable service the sovereign conferred on him the mitre of Mexico, which, in the year 1664, was renounced by Osorio Escobar.

The only other event of note, during this viceroyalty, was an attempt at colonization and pearl fishing on the coasts of California by Bernal Piñaredo, who seems rather to have disturbed than to have benefitted the sparse settlers on those distant shores. He was coldly received on his return by the viceroy, who formally accused him to the court for misconduct during the expedition.

Don Juan de Leyva sailed for Spain in 1664, and soon after died, afflicted by severe family distresses, and, especially by the misconduct of his son and heir.