Wikipedia appears at first sight to be somewhat contradictory on this. In its Etymology section we read that "The city was founded in 1535 under the name City of the Kings (Spanish: Ciudad de los Reyes) because its foundation was decided on January 6, date of the feast of the Epiphany. This name quickly fell into disuse and Lima became the city's name of choice; on the oldest Spanish maps of Peru, both Lima and Ciudad de los Reyes can be seen together." Then in the History section it says that Pizarro "chose the Rímac Valley to found his capital on January 18, 1535".
I suppose there is going to be some time lapse between deciding to found a city and actually founding it. I'm not sure what you'd need to do in the meantime, although there would probably be some negotiating to be done with the locals.
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