The municipality of Lagoa is situated in the Barlavento Algarvio, (windward) between the municipalities of Portimão and Silves. The headquarters of the council is about 50 km distant from Faro and 8km from Portimão. It was created in 1773 when King D. Jose I gave it the charter.

From Benagil as far as the estuary of the River Arade, along 17km of coast, of cliffs and rocks of picturesque shapes, Lagoa offers the most charming beaches of the Algarve, which have served as scenarios of inumerous movies and documentaries. This unique nature is the source of inspiration for painters and photographers. Sportive fishermen and divers find these waters a paradise.

Archaeological evidences confirm the human presence in this municipality since Neolithic times. The Roman occupation made the River Arade a development route. On the banks of this estuary great complexes of salting and preservation of fish took place. Great quantities of copper, which existed in abundance in this area, were transported along this river. Carvoeiro and Ferragudo were important fishing communities founded in those Roman times.

Great factories of fish canning were installed in the 19th century in this municipality namely in Ferragudo. Today this activity is extinguished but it brought great prosperity to the council while it lasted.

From the 1970s, Tourism became the economic basis of this council, being its development engine. Supported by the wealth of tourism, the council has been high levels of developments from the last 25 years. In the council one founds very high quality resorts, unbelieved beachs, excellent golf courses, hotels and a very large real estate market, gives security and guarantee of adequate revenue to those who invest in this municipality.

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