[2] Its second industry is agriculture which was primary until the 1970s, it currently has more urban population (80%) than rural (20%).

The settlement was founded in 1803, around eighteen years before independence by Manuel Jerônimo de Sousa, who was Baron of Mauá's grandfather.

Under law 54 of May 26, 1846, it was lifted to a parish as Nossa Senhora da Graça de Arroio Grande.

Under law 596 on January 2, 1867, the municipality of Jaguarão was divided into five districts, one of which was Arroio Grande.

Its main agricultural products are rice, soy, wheat, corn and a few more, cattle includes bovines and ovine.