Meaning "big fajã", a special term roughly referring to a coastal scree influenced by lava, as the town resides down from a notable cliff-face.

On the port of Fajã Grande, Father José António Camões, noted the following about its installations: The fertility of the land permitted the cultivation of the lichen Rocella tinctoria (Roccellaceae), a plant sought after by many of the commercial interests in the region eager to support the dye industries of Europe.

The debate was finally ended by the civil governor, Luís Teixeira de Sampaio, who reported on 3 April 1857, that a single parish of Fajã Grande was desirable, owing to its distance from the community of Fajãzinha (then parish seat), the size of its community, and the problem caused by annual floodings along the Riberia Grande river, which regularly cut links annually.

Local narratives mention several instances when the Ribeira Grande impeded travel to Fajãzinha, resulting in the faithful having services at the Pedra da Missa (English: Stone of Mass), an elevated point on the river bank where they gathered, prayed and then dispersed after celebrating the liturgy.

Governor Sampaio also noted that American whaling and high-seas travel had brought a new importance to the village, also justifying a rethink of the existing administrative divisions.

Finally, on 4 April 1861, King Pedro V of Portugal decreed the creation of a new ecclesiastical parish, to include Ponta, Fajã Grande and Cuada, centred on the Church of São José da Fajã Grande (the responsibility of the Bishop of Angra, friar Estêvão de Jesus Maria, dated 20 June 1861.

Cuada, for many years, was a collection of uninhabited homes, but today it has been rejuvenated by rural tourism, and classified as an Area of Municipal Interest.

[citation needed] Fajã Grande had always been characterized by its land and connection to the sea, resulting in a considerable part of its population employed in the primary industries (about 50%), that included agriculture, livestock husbandry and fishing.

Generally, Fajã Grande is typical of rural associativism, an agricultural centre underpinned by the socio-cultural dynamism of sport and social celebration.