The settlers initially focused on animal husbandry, agriculture and a fledgling winery, although some commerce and services developed concurrently.

The Church Matriz of Nossa Senhora da Boa Nova (English: "Our Lady of the Good Tidings"), a three-nave temple, was inaugurated in 1871.

The area is relatively hilly along the coast, and gradually slopes towards the interior, where it reaches its peak (literally) in the stratovolcano of Pico.

Forests dominate the mid-elevations, while scrub, mosses and smaller tree species are exist along the slopes of the mountain.

Bandeiras is also noted for its annual Festival of Portuguese Folklore, which takes place in the Salão do Povo and Sports Park every June 10.