Residents of the municipality retain the memory of a chief, Jacó, and his companion, a wise woman named Bina.

Mining was forbidden by Dom Rodrigo da Costa, Governor-General of Brazil from 1702 to 1705, but bandeirantes and other Portuguese colonialists moved to the region.

Settlement along the banks of the Itapicuru Mirim River grew rapidly due to the arrival of more gold panners.

The Count of Sabugosa tasked Pedro Barbosa Leal with organizing the gold mines and towns of Jacobina and nearby Rio de Contas.

The Vila Santo Antônio de Jacobina was established by a royal charter of Dom João V, dated August 5, 1720.

The city seat was at the Mission of Nossa Senhora das Neves do Say, an indigenous village founded by Franciscan priests in 1697.