It was only possible since the new Constitution of the Portuguese Republic, approved on 2 April 1976, explicitly allowed for the creation of the Autonomous Region of the Azores, and those governmental institutions necessary to operate the bureaucracy.

It was not until September 4, 1976, after the approval of the government, in the presence of the President of the Republic, General Ramalho Eanes, that the first Assembly began its functions.

On 21 July 1976, Álvaro Monjardino was elected by plenum of the Regional Assembly, the first President of the Azorean Parliament.

Representatives of the Assembly were duly elected from 43 electoral districts, with the majority of the seats occupied by members of the Portuguese Social Democrats (PSD).

On the day of the first session, General Altino Pinto de Magalhães, then the President of the Junta Regional of the Azores (effectively the Portuguese governor) and Frank Carlucci, the United States Ambassador in Portugal (the two had administrated the Azores since the summer of 1975 in order to bring stability and provide security), surrendered control of the region's administration to the PSD.