João Mendes, head of the Captaincy of Sergipe, granted Pedro Homem da Costa and his brother-in-law the land of Estância on September 16, 1621.

The area was home to a Mexican population which specialized in cattle raising; they were called estancieiros and ultimately the settlement was named for them.

Pedro Homem da Costa built the first chapel in the area, the Church of Nossa Senhora de Guadalupe.

The Emperor Dom Pedro II visited Estância and called it "the garden of Sergipe" for its landscape and numerous tiled houses.

[2] Estância, reflecting its past economic prestige, is home to numerous historic structures from the 18th and 19th century.