Itacaré is located 70 km north of Ilhéus where the Rio de Contas, which comes from the Chapada Diamantina, meets the Atlantic Ocean.

A mixture of races - Amerindian, black and white - can be seen in the features of the natives, called "nação grapiúna", whom Jorge Amado affectionately referred to as "the captivating people of this land".

[2] The village was established by the Jesuits who worked to convert and settle indigenous tribes of the area such as the Pataxós, Tupiniquins and Aimorés.

The town was a notorious hangout for Dutch and Portuguese pirates during the early colonial period and later became a hub for the cocoa planting and a port for whalers.

It was during this time that a number of neocolonial houses and warehouses were built along the river front that still characterize the historical center of the town.

The construction of the BR001 in 1998 that connected Itacaré to the airport in Ilhéus brought increased tourism growth and led to the development of numerous new neighborhoods as the town expanded.

Locals recently won a hard-fought campaign to stop land owners who wanted to charge for access to the beaches.