[2] Oral tradition suggest that the name came from the erection of the hermitage to Nossa Senhora da Guia, where the Virgin appeared to the people.

This old settlement is located on the flank of a short mount, the Cerro de São Sebastião, with expansion occurring in the second quarter of 20th century.

The population of the civil parish has maintained an agricultural tradition, based on a rural society, producing fig, carob, almond, vineyards, wheat, barley and rye, in addition to a wide assortment of fresh vegetables.

The civil parish of Guia is home to Zoomarine a theme park with a primary aim; to educate about the seas and the wildlife within them.

Situated on the N125 (the main east to west road on the Algarve with the exception of the A22 Motorway) the town is a busy but nevertheless attractive place.