The construction of the railway São Paulo - Rio Grande do Sul and the passages of the cattle drovers in the region mobilized many immigrants.

Those migrations caused the creation of many villages at the Rio de Peixe river, like Bom Retiro, Capinzal and Videira.

Then, the locality welcomed inhabitants coming from the states São Paulo and Paraná on the search of territory for cattle breeding.

In the beginning of the 20th century, Campos Novos was embossed by the construction of the railway São Paulo - Rio Grande do Sul and by the Contestado War.

From 1908 until 1910 many immigrants of various nationions arrived in Campos Novos: Poland, Russia, Lebanon as well as other settlers from other Brazilian states, especially descendants from Germany and Italy after the Contestado War (1912–1916).

[2] The municipality is divided into following 7 districts since 2007: Campos Novos has an oceanic climate (Köppen: Cfb) with warm summers, mild winters, and heavy rainfall throughout the year.

The church São João Batista on the Lauro Müller square is decorated by wooden sculptures and beautiful stained glass.