Funes was founded by Tomás de la Torre in 1874. At the time its name was San José. It was also known as Loma de Ávila.
The city is located on the National Route 9 and has access to several other major roads and transportation, such as the Rosario-Santa Fe Highway and the Rosario-Córdoba Highway. The lands of the Rosario International Airport are partly included in the jurisdiction of Funes.
The city is known as the "Garden of the Province". On weekends and during summer vacations, it is invaded by visitors, especially from nearby Rosario; local sources estimate the number on 40,000. A large part of the urban infrastructure is devoted to private houses owned or hired by these occasional residents.