The former village of Palma Velha was a cluster of huts that served as a campsite for muleteers coming from different regions, on their way to Curvelo.

With the building of the railroad Estrada de Ferro Central do Brasil, in 1910, the village changed its name to Várzea da Palma.

Around the central station settlers began to make their houses attracted by commerce and the movement of the new railroad line.

Custódio Fernandes Sampaio, considered the founder of the city, was responsible for donating part of his lands for the building of the first church.

[2] The main economic activities are cattle raising for meat production, metal industry, and farming.

The main permanent crops were bananas, coffee, coconut, citrus and tropical fruits, hearts of palm, and table grapes.