Água de Pena is a civil parish in the municipality of Machico on the south-east coast of the Portuguese island of Madeira.

[2] The area of Água de Pena was first sighted by the crew and explorers with João Gonçalves Zarco after he disembarked along the coastal spillway of Machico, likely around July 1419; the escarpment of Penedo overlook the beach of Machico, and the crew encamped in the shadow of the promontory overnight, before exploring the island the next day.

The ecclesiastical parish, since its early settlement, has been referred to as Água de Pena (1560), supported by older documents to that effect.

Henrique Teixeira, second son of Tristão Vaz Teixeira, one of the Madeira's discoverers and first Captain-donatário of Machico, had many lands "linked with agriculture and for this reason was very wealthy, ennobling the village of Machico with many sugar cane machinery, as well as sugar cane fields, cattle and bread, and assemblies that he ordered cut and take advantage...".

[3] Other documents from the historical ombudsman of the archipelago, per mandate of the Council of Trade (13 March 1694) ordered the spending of 651,000 réis on expenses associated with quarrying rock and carpentry on the new church, and a secondary receipt for 4000000 réis for similar expenses to build the church in an area that was more "convenient and less windy" (2 April 1745).

The secondary sector, revolves around tertiary activities, such as civil construction, restaurateurs, bakery shops, hospitality and automobile sales/service (repair and sale).