The most recognized story pertains to early settlers whom, upon arriving in the vicinity of the coast, noticed a large ravine emptying into the ocean from a swamp.

What is known, is that the settlement is concentrated around this church (dating back to about 1444) owing to the abundance of potable water and fertile lands.

The town of Água de Pau is located along the southern coast of the island of São Miguel, approximately 7 kilometres (4.3 mi) from the municipal center of Lagoa.

It is bordered on either frontier by the Lagoan parishes of Santa Cruz (to the west) and Ribeira Chã (to the east), and fronts the Atlantic Ocean to the south.

Locals and tourists participate in the event, that includes promessas, petitions to the Virgin Mary and prayers of thanksgiving.