The circuit was originally constructed in 1978 as a semi-permanent venue, with a total length of 6.206 km (3.856 mi). Rather than being purpose-built from scratch, it was created by modifying the ring road that encircles Lake Potrero de los Funes, the reservoir sitting at the track's center. This origin gave the circuit its defining character: substantial elevation changes along the lakeside terrain, a wide variety of corner types ranging from fast sweepers to tight hairpins, and the distinctive quality of racing with the lake itself visible from much of the lap.
After hosting a round of Turismo Carretera on 15 August 1987, two separate crashes resulted in the deaths of two spectators and left a driver injured. The accidents prompted the immediate abandonment of the circuit, and it remained unused for two decades.
The track was reopened in 2008, revived as a venue for the FIA GT Championship. Before resuming racing, the circuit was modified to address the safety shortcomings that had led to its closure: two chicanes were added to reduce speeds through sections lacking adequate run-off area, and the final corner was tightened to create a safer pit entry. These modifications extended the circuit's length to 6.270 km (3.896 mi).
The inaugural event of the revival era was the San Luis 2 Hours, held under the FIA GT banner. Belgian pairing Bert Longin and Anthony Kumpen won the race in a Saleen S7R, claiming victory in what was the circuit's first international-class event.
The circuit went on to host two rounds of the FIA GT1 World Championship in 2010 and 2011, bringing top-level GT machinery back to the San Luis venue alongside rounds of Argentine national championships TC2000 and Turismo Nacional. The combination of mountain scenery, the lakeside setting, and the circuit's technical demands made it a visually distinctive host for GT competition.
Activity at Potrero de los Funes gradually wound down after the FIA GT1 era concluded. The circuit continued to host domestic events for several more years; the final round held there was a TC2000 round in 2018. After that, the venue fell into disuse. Following years without events, the circuit was dismantled in 2024, ending its existence as a racing venue.
The Potrero de los Funes Circuit occupies an unusual place in Argentine motorsport history: twice brought into racing, twice withdrawn — first by tragedy, then by neglect. Its lakeside ring-road origins and dramatic topography made it one of the most photogenic circuits ever to host international competition in South America, and the FIA GT era gave it a brief but genuine place on the global GT calendar before the venue's eventual closure.