[2] Distant 550 km from the state capital, Florianópolis, it is Headquarters of the Metropolitan Region of Chapecó, and exerts significant influence not only in the Catarinense West but also in the Northwest Rio Grande do Sul and Southwest of Paraná, from an economic, cultural, or political point of view.

[5][6] Until the 19th century, the area around Chapecó land was under indigenous (mainly Kaingang) and Spanish control, mostly unoccupied by European people and subject to border issues and armed conflicts.

Its area was then given to a private colonization company[7] which began selling land to people coming mainly from the neighboring state of Rio Grande do Sul.

Colonized by Italian and German immigrants, mainly from Rio Grande do Sul, Paraná, São Paulo and the coast of Santa Catarina, the city today attracts several inhabitants thanks to its development.

This region of the state is home of some of the largest meat processing and exporting industrial enterprises such as Sadia and Seara Foods; the farmers are organized in agricultural cooperatives.

Other major economic sectors are metal mechanics specialized in equipment for slaughterhouses and transportation, plastics and packaging, furniture, beverages, software development and biotechnology.

On November 29, 2016, Chapecoense team members and staff boarded LaMia Flight 2933 to play the first leg of the 2016 Copa Sudamericana Finals against Atlético Nacional in Medellín, Colombia.