 The ancestral stock of the horse of South America descended from horses brought to the western hemisphere by the Spanish of Andalusian and other Iberian bloodlines.In the southern part of the continent, significant numbers of these horses developed within geographically isolated conditions and by the mid-19th century, there were any number of smaller, inbred animals in the herds of Mapuche of southern Buenos Aires province in Olavarría, Argentina.The Falabella horse was originally developed in Argentina from local horses of Criollo stock, beginning in 1868 with the breeding program of Patrick Newtall.