Club Centro Deportivo Municipal was founded upon the initiative of three municipal directors of Lima, who intended to have a football team representing the municipality of the city. Thus Círculo Deportivo Municipal was formed, which in 1934 merged with another team to create Centro Deportivo Municipal, participating in the promotion tournament in 1935.

The club was officially founded on 27 July 1935 in the Municipality of Lima. After finishing second in the promotion tournament, the team won the right to play in the Primera División in 1936, and obtained its first national title in 1938.

Deportivo Municipal's win in 1938 began the clubs golden era. In the 1940 Peruvian Primera División, the title was in contention between Deportivo Municipal, Universitario, Alianza Lima, and Atlético Chalaco. Deportivo Municipal faced Atlético Chalaco in the final match where a victory was needed to secure the title. Municipal gave Atlético Chalaco a full-throttle performance with goals from Magán and Quiñónez, then Cabrejos and 'Tito' Drago, sealed the 4-1 victory, securing them the title for the second time.

After obtaining their second title, Deportivo Municipal gave a masterclass in Peruvian football by achieving two resounding victories against the famous Boca Juniors of Argentina. During this glorious era, the trio that would become history in Peruvian football was born, the "Tres Gatitos" (Three Kittens), who should have actually been four due to the magnificent contribution of 'Titina' Castillo. Municipal won their third national title in 1943 and fourth in 1950. They were runners-up in 1941, 1942, 1944, 1945, 1946, 1947, and 1951.