This paper provides a historical examination of the origins and persistence of social segregation within the Chilean educational system, tracing its inception to the nineteenth century. The analysis explores the geographical disparities that characterised the early education system, particularly the divide between rural and urban areas and the resultant inequitable access to primary education. The study further evaluates government interventions, such as the enactment of the Law for Compulsory Education in 1920, and their efficacy in addressing educational disparities. Additionally, the failure of the welfare state in Latin America is scrutinised to contextualise the enduring socio-economic inequalities underpinning the Chilean educational landscape. From the initial segregation based on geographic location to the present-day segregation primarily influenced by socio-economic status, the paper elucidates the historical trajectory of educational inequality in Chile. By delving into these historical developments, the study aims to enrich the understanding of the complex interplay between social inequality and education within the country.