It is a city of Faro district and is home to the city of 4 parishes, Estômbar and Parchal; Ferragudo; Lagoa and Carvoeiro; Porches. This municipality is bordered on the north and east by Silves, west of Portimão and south by oceanic immensity of the Atlantic.

Lagoa is a land of attractions that owes its name to the existing lagoons and over a long period this region belonged to the city of Silves, just being given the autonomy in 1773, due to administrative reform operated in the time of Joseph. Therefore, lagoon was elevated to village.

In the late nineteenth and early decades of the twentieth century, fishing, fish canning industry and was brought prosperity and dynamic to the town of Lagoa. Currently the city of Lagoa, having been elevated to such in 2001, is mainly subsistence tourism and engaging activities to this. The city of Lagoa is in the heart of the western Algarve, which offers everything from classical music to folk festivals, outdoor festivals, the film and theater cycles, the quality of spaces and cultural sites, the beauty of natural landscapes, pond became a city and county that offers much more than culture and entertainment, offers a different life.