In late 2019, the municipality of Guaitecas held a contest called "A flag for Guaitecas" where the community was invited to design a flag to represent it.
The elements of the communal shield that should be represented on the flag were alluded to in the contest rules, namely: sailing, shellfish, lighthouse, with a shellfish extractive tools, anchor and the Cypress of the Guaitecas (Pilgerodendron uviferum) along with the colors of the shield that were used in the winning design of three stripes: blue, yellow, and red in descending order.
On 3 June 2020, the municipality announced the winners of the contest in first, second and third place, corresponding to Leonardo Vera Coñocar, Zaira de la Hoz Chiguay and Sebastián Villablanca Seguel, respectively.