The city was originally settled by Azorean descendants and later received a contingent of German and Italian immigrants.

A railway, brought by Gramado's founder and first administrator, José Nicoletti Filho, arrived in the city in 1921, boosting the local economy.

Executive powers are held by the mayor of Gramado, who appoints a Cabinet, the heads of several municipal bodies and members of the Planning Commission.

[6] In the election of 2016 the opposition candidate won, thereby Fedoca Bertolucci takes the City Hall on 1 January 2017.

Rosenfeld imported pine seedlings from the Black Forest in Germany to be planted all around the newly formed lake's rim.

There is a boathouse, working daily from 08:30 to 19:00, where you can rent swan boats to tour the lake, concession stands, public restrooms, and a small craftsmen fair nearby.

Visitors from the Northern Hemisphere mid-latitudes may notice several tree species (including Red Maple, American Sweetgum and American Tuliptree) common to their home territory in cultivation here, flourishing among the native Parana Pine.