In 1924, a match between Ítalo-Brasileiro and Douradense, team from Linha Dourado, was being played in the field where the Júlio de Castilhos square is located today, in the center of Erechim.

Their patriotic motivation gave the new association the colors green and yellow, as well as a name that referred to Brazil's independence, and on 18 August 1924, Ypiranga Futebol Clube was born.

Since the beginning of its activities in the soccer department, in 1924, Ypiranga played its matches in a stadium known as "Estádio da Montanha", located at Rua Bento Gonçalves, Ipiranga district, in a field that deteriorated over time and was abandoned.

After receiving the support of the club's president in 1964, Oscar Abal, the idea of building its own stadium was started, on a piece of land that had a lagoon and a quarry around it.

This reduction is also due to the implementation of two thousand white chairs in a sector of the bleachers, which come from the Estádio Beira-Rio, which would no longer be used after the renovation made for the 2014 FIFA World Cup.

Despite the reduction in capacity by about eight thousand seats, the Colosso da Lagoa is the fourth stadium in number of spectators in Rio Grande do Sul, and the largest in the countryside.