The first presence of the Brazilian State in the region was, in the end of the 19th century, a military colony in the Salto do Avanhandava, that was nicknamed "Banishment".

At the beginning of its population boom, the forest, coffee, sugar cane, cattle industries, carriage and railroad transport were the base for the economy of the city.

Migration from Minas Gerais also introduced traditions of that region, in the form of candies, cheeses, and in artisanal activities related to the sugar cane culture.

The beaches at the edge of Tietê River, along with the artificial lakes created by the Nova Avanhandava Power Plant are major tourist attractions.

Famous people born in Penápolis include: the Bishop of the Diocese of Duke of Caxias, Dom Mauro Morelli; the Bishop of the Armenian Church of São Paulo, Dom Vartan Waldir Boghossian; the actress Pepita Rodrigues and the composer and singer Francisco Gottardi (the Southerner), of the pair caipira Sulino & Marrueiro and Sabrina Sato, daughter of Omar Rahal and Kika Sato.