This square's origin stems from the early-19th century, when the new main façade of City Hall was built and the former church of Sant Jaume was demolished.
At this junction there was the forum and the Temple of Augustus, of which four columns are preserved on top of Mont Tàber, found at the adjacent Paradís Street.
Formerly, the city council of Barcelona met in the porch at the front of that church, until it bought a number of nearby homes that would house the future headquarters of the institution on the neighboring street.
Prior to these demolitions, the square was limited to a small angular space, with the rest of the future plaza being occupied by the same church, its cemetery, and the houses of the Magistracy and the General Court of the Veguer.
The Plaça Sant Jaume has also been called "Constitution Square" in various historical periods, and this name appeared on a plaque on the façade of the City Hall (removed in 2013).