The municipality of Lagoa is geographically the closest to Ponta Delgada.

The town of Lagoa is one of the oldest settlements of São Miguel. Its name comes from the lake that existed in front of the Santa Cruz church.

Lagoa is situated in the south coast of the island and has five parishes:
Santa Cruz and Nossa Senhora do Rosário that compose the town, Água de Pau, Cabouco and Ribeira Chã.

It is the smallest municipality of São Miguel, but offers many touristic attractions: beaches, fishing harbour, Caloura – a summer retreat, a ceramic factory, natural swimming pools, a tobacco dryer and the south slope of the Lagoa do Fogo (Lake of Fire).

This municipality is rich in the production of pineapple, wood, alcohol, rations, soap and ceramics and in agriculture, cattle raising and fishing.

The place called Caloura is the touristic ex-libris of the municipality.
The vineyards sheltered by black stone walls, the typical harbour protected by a high cliff and the whitewash convent make this place an ideal one for a summer retreat.