The town grew rich as the area became the largest producer of cassava in Brazil, and it became the target of pirates and invaders such as the Dutch.

To protect itself from further incursions, the inhabitants blocked the passage to the harbor with huge rocks, that forced boats to zigzag in the channel in order to reach the port.

In 1782, by order of the Portuguese Crown, the pioneer João Gonçalves da Costa opened the first road connecting Camamu with inland settlements.

Because of its importance to the economic life of the province, it became known as the "Estrada das Nações" ("Road of Nations").

The municipality contains 33.28% of the 118,000 hectares (290,000 acres) Baía de Camamu Environmental Protection Area, created in 2002.