Hispania Tarraconensis was one of three Roman provinces in Hispania. It encompassed much of the northern, eastern and central territories of modern Spain along with modern northern Portugal. Southern Spain, the region now called Andalusia, was the province of Hispania Baetica. On the Atlantic west lay the province of Lusitania, partially coincident with modern-day Portugal.

The Phoenicians and Carthaginians colonised the Mediterranean coast of Iberia in the 8th to 6th centuries BC. The Greeks later also established colonies along the coast. The Romans arrived in the 2nd century BC during the Second Punic War.

The province Hispania Citerior Tarraconensis was established in the reign of Augustus as the direct successor of the Roman Republican province of Hispania Citerior ("nearer Hispania"), which had been ruled by a propraetor. The roots of the Augustan reorganisation of Hispania are found in Pompey the Great's division of Hispania between three of his legates at the end of the Republic, immediately before his civil war with Julius Caesar. As a result of the agreements that led to the formation of the First Triumvirate in 60 BC, Pompey had received the governorship of the Iberian provinces. Given that he preferred to remain in Rome, where he could oversee affairs in the capital, he delegated the government of Hispania to three legates:

At the end of the civil wars, Pompey's division was consolidated by Augustus in 27 BC, when he formally established the three provinces of Hispania Citerior Tarraconensis, Hispania Ulterior Lusitania (corresponding to modern Portugal, apart from the northern region of the modern country, plus Spanish Extremadura), and Hispania Ulterior Baetica (corresponding to the southern part of Spain, i.e. Andalusia). Citerior and Lusitania were Imperial provinces, while Baetica was a Senatorial province.

The creation of these new provinces was achieved in order to facilitate the incorporation of the northwestern portion of the Iberian peninsula, inhabited by the Gallaeci, Cantabri, and Astures, into the Roman empire. Tarraconensis thus served as a base for the annexation of these territories during the Cantabrian Wars (27–19 BC). Augustus himself resided from 27 to 26 BC at Segisama (modern Sasamón, Burgos), and at Tarraco, where he received an embassy from India. During this period he was accompanied by his nephew and heir, Marcellus, and his stepson, the future emperor Tiberius, both of whom served as military tribunes in 25 BC in the conflict with the Cantabrians – the pair's first military commands.

The name of the province derives from its capital, Colonia Urbs Triumphalis Tarraco. The provincial borders were modified in 12 BC, in order to incorporate the Galician and Asturian territories which had previously belonged to Lusitania, and perhaps to an ephemeral Transduriana province before that, as well as the mining area around Castulo that had previously been part of Baetica. This reorganisation meant that all Roman troops stationed in Hispania were henceforth under the command of a single Roman legate based at Tarraconensis and that the main mining regions, which supplied precious metals to the Imperial treasury (gold in the Galician Massif, silver in Sierra Morena), were under the direct control of the Imperial administration, with easy access by sea to Italia and Rome, where the Imperial mints were located.

In addition to creating the province and setting its borders, Augustus followed the directions left by Julius Caesar in granting many communities in the province the privileged status of colonia or municipium (Roman or Latin), especially along the Levante coast, the part of Baetica transferred to the province in 12 BC, and the Ebro Valley, along with some foundations on the Meseta Central and in the northeast. He also regularised the status of the other political entities in the province, the civitates stipendiaria (communities subject to tribute), whose affairs could be directly intervened in by the governor.

This policy was continued by Tiberius (AD 14–37), who increased the number of municipia in the northern part of the Meseta Central.