There is an assumption that this settlement, donated in 1515, became known as the Town of the Bishop, but the reality refers to several letters in 1329 and 1353, suggesting that the Aldeia do Bispo existed in the 14th century.

Henry's words were that the town was situated "forth, before, in the presence" of the Cape of Sagres, in a place called "terça naball" (an old shed of Muslim origin), where he named it Vila do Infante.

Although these references match the documented proofs, there is still some discrepancy in assuming that the town was built so easily, even as the coast was an active front piracy and lacked potable water.

Aldeia do Bispo situated initially farther east of the current settlement, from the writings of Father Luís Cardoso, in the 18th century.

The author mentioned that the parochial church existed outside the settlement, and the Aldeia de Santa Maria do Cabo (today extinct) was situated in the Curraes da Granja.

This coat-of-arms included the arms of Infante Henry the Navigator, an armillary sphere and a ship with sails, under a Latin and Portuguese inscription.

Situated in the extreme southwest corner of Portugal (and also continental Europe), the municipality of Vila do Bispo is located within the Barlavento Algarvio, the southwestern Algarvean coast, surrounded on its southern and western frontiers by the Atlantic Ocean.

[12] Meanwhile, to the west of the St. Vincent coast are the beaches of Telheiro, Ponta Ruiva, Castelejo, Cordoama, Barriga and Murração, that include many carved cliffs and rocky promontories.

Vila do Bispo frequently experiences sunny conditions, averaging over 3100 hours of sunshine and, along with Faro, has the highest radiation in continental Portugal.

Vila do Bispo is twinned with:[18] Close to the municipality of Lagos, starting from the small town of Burgau [19] it belongs to a protected area that covers most of the westernmost part of Algarve (Barlavento Algarvio), so its beaches are famous for their perceived beauty.

Owing to its natural conditions, this area of Algarve has been transformed into a tourist-oriented economy, with retirees and seniors buying or renting homes or condominimums along the coastal zones, including Parque da Floresta and Alma Verde.