The house is named after its facade decoration of tiles conforming a mural of human caricatures in dancing pose. Baroque Style. It was built in 1792 by Agustín de Ovando y Villavicencio, Councilor and Mayor of the city. A story tells the facade decoration was intended to taunt his political adversaries, who opposed to the construction of the house. However, some researchers argue those caricatures have nothing to do with a political backdrop, and instead they see a representation of an ancient greek myth known as "The Labours of Hercules"

 The story, simple and short in itself, seems to have a certain dose of verisimilitude because of the historical facts and the real people mentioned along: Don Agustín de Ovando y Villavicencio was a lordly man with a mighthy influence among eclesiastic and civil authorities of Puebla, and one of the richest men in town; owner of several high-value houses and farms. He was descendant and inheritor of a Spanish Linage, Los De Ovando,  in whose viceregal house they proudly showed the heraldic stone of the family at the top of the front entryway. Don Agustín was a man of an outstanding physical appearence, which contributed to his arrogant, intolerant, despotic and disrespectul attitude towards the powerful people, and even more towards the commoners. In 1773, he was appointed as a member of the Civil Council of Puebla, and that same year, as Mayor of the City. He assumed the same office for the second time in 1791. An later on, he obtained the title as "Perpetual Honorary Councilor." He had a perfect knowledge of all rules, proclamations, orders and everything else in public governance; but it was more remarkable the accurate judgments he used to make about his close collaborators. Don Agustin had an acid way to criticize everyone and everything, making fun of people with humiliating nicknames and mocking stories. So, in the eyes of the people, he was a hateful person. At that time, in all the Viceroyalty of New Spain, there was a mandate that the Council Houses (which from 1714 are referred as Municipal Palace) had to be the main, tallest and most ostentatious building of every city, as a symbol of superiority and authority. Don Agustín, as a "Retired Councilor" knew well, in all its meaning, such mandate. So, in a desire to demonstrate his preponderance and to defy authority, he started the construction of a three story house just around the corner of, and higher than, the Municipal Palace. When the Civil Council realized his intentions, they ordered De Ovando to suspend the construction and to demolish the third floor of the house. He dismissed the order, but the works were interrumpted by police enforcement. At first they tried conciliation, but failed. So, to resolve the case, they recurred to the Viceroy, who was also conflicted by the influece of the De Ovando Family on the Court decisions; but he finally decided to support the authorities of Puebla. De Ovando considered this decision as an unbearable humiliation. So he traveled to Spain, and using his influence, he obtained the permission from the King to finish building his house, which then surpassed the height of the Municipal Palace, and therefore broke the tradition of exclusive height for viceregal palaces.

 But Don Agustín had been ambarrased, his pride was hurt, and most of all, he felt full of hatred against the Councilors, whom he knew even in their most intimate habits, after they had been mates in the Council. To take revenge on them, he had made in Valencia tile boards to exhibit satirical caricatures of each one in grotesque pose. Upon his triumphant return to Puebla, he had those tile boards embedded in the facade of the house that raised the dispute. No document exists to prove this story, hence it is to be considered as a popularlegend. Notwithstandig, the conclusion is Don Agustín de Ovando y Villavicencio bequeathed to Puebla City posibly the oldest known caricatures in Mexico dating back to the Viceroyalty times.