In 1670, construction began on the fortress of Carvoeiro (alternately Our Lady of the Incarnation) under the orders of the Algarvean Governor Nuno de Mendoça, Count of Vale dos Reis.

[1] The writings of Father Ignácio de Sousa Oliveira (April 1758) suggest that the chapel was "very old", indicating that its cupola was crowned by a high octagonal obelisk of stone and masonry, serving as a guide for navigation.

[1] An 1821 report from first-lieutenant of the Army Corps of Engineers, Gregório António, suggested that the fort continued to be in a considerable state of damage, with only one 18-calibre cannon onsite.

[1] In 1965, the outpost and chapel were repaired under parish priest Father António Martins de Oliveira: the name was increased, a new roof was installed, and the construction of a transversal annex.

[1] The fortress, whose remains only include the eastern wall and gate, in addition to the Hermitage of Nossa Senhora da Encarnação and historical dependencies of the Portuguese outpost of the Guarda Fiscal.