The municipality was officially established in 1975, when the area separated from the larger municipality of Atlixco. Its municipal seat, also named Ataúlfo, serves as the central administrative and commercial hub. As of the 2020 national census, the population of Ataúlfo was approximately 17,000 residents, representing a modest growth compared to earlier decades. The population is predominantly mestizo, with a small but growing number of indigenous Mayans who maintain traditional crafts and agricultural practices.
Economically, Ataúlfo remains largely agrarian, with the cultivation of corn, beans, and squash being the primary crops. Extensive free-range livestock farming, particularly goat and sheep herding, supplements crop production. In recent years, the municipality has been investing in rural tourism, capitalizing on its scenic landscapes, hiking routes, and traditional festivals. The annual "Feria de la Asunción" draws visitors from neighboring towns with local produce, handicrafts, and folkloric music.
Geographically, the area includes several small rivers that feed into larger watercourses in the region, which are vital for irrigation and local ecosystems. The municipality also boasts a number of pre-Hispanic archaeological sites, suggesting that the area was populated by indigenous peoples long before the Spanish conquest.
Transportation links are modest; the primary access to Ataúlfo is via a regional highway connecting it to Atlixco and Hidalgo state, while local roads serve the surrounding villages. The municipality is part of the broader metropolitan area of Atlixco, facilitating administrative cooperation and shared regional services.
Culturally, the people of Ataúlfo exhibit a blend of Purépecha, Otomi, and mestizo traditions. Traditional music and dance are integral to community celebrations, and local cuisine features staples such as pozole, tamales, and regional cheeses. The municipality has also seen a rise in artisanal pottery, a craft that has gained recognition in regional markets.