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During this phase according to the ethnohistoric accounts, Cholula was taken over by the Gulf Coast group known as the Olmec-Xicallanca, who made it their capital.From there, they controlled the high plateau of Puebla and Tlaxcala.
Initial stages of the Great Pyramid probably date to the Terminal Formative Period and show stylistic resemblance to early Teotihuacan.
It is surrounded to the west by the snow-covered peaks Popocatepetl and Iztaccihuatl, and Malinche to the north.
The summer rainy season and the melted snow in winter provide a great environment for irrigation agriculture.
There is also a confluence of several perennial streams with the Atoyac River that creates a wetland to the north and east of the urban center.
This has resulted in abundant and excellent agriculture during the colonial period, which led to Cholula being known as the richest agricultural region in central Mexico.