The island's volcanic soil is rich and supports cultivation of fruits, grains and grapes used in winemaking.

[1] The early settlement was primarily agrarian, but by 1486 its population had grown sufficiently to warrant the founding of the vila (or town) of Santa Cruz in 1486, while Praia lost this role.

[4] Between the 16th-17th century, Graciosa was regularly attacked by pirates and privateers, which obliged the local government to construct fortifications along the island's coast for defense.

Finally, in 1879, Prince Albert of Monaco, notable for his oceanographic and maritime studies, stopped in Graciosa and visited Furna do Enxofre.

[4] The construction of the port in Praia, and the northern aerodrome, were important in breaking the island's isolation and concentration on agriculture.