In Roman times, the municipality was called Vacus, and had both coastline and large sand dune valleys just east of its center. Increases in sedimentation and sand drifts leveled and lengthened these distances. According to António Gomes da Rocha Madail and other writers, there is tradition among the native population that they are descendants of the seafaring salt farmers of Phoenicia.
Due to its fertile soils, agriculture plays a major role in the municipality's economy. Its green meadows create exceptional conditions for cattle breeding and milk production at a national level. The forest areas and vegetable production are other sources of prosperity for the municipality. Ceramics are the principal money-maker in its industrial sector.