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Lagoa is located on the west side of Faro on the EN 125 road in the Algarve. The original hamlet of Lagoa was created by the Moor in the 8th century of the Algarve. When the area was later re-conquered in the 12th century by Christian forces from the north and aided by the passing Crusaders. In 1773 King Jose I, granted the status of municipality to Lagoa. Within the town there is the attractive 18th century Convent de Sao Jose which is a cultural centre for the arts. The main street of Lagoa has some restaurants but plenty of cafes in which to enjoy a coffee. The main past commercial activity of the town was agriculture, vineyards and some fish canning industry. With the advent of tourism the vineyards became plots for villas and the town has been built around this new industry. Principal villages for holiday and residential accommodation can be found in the villages of Benagil, Carvoeiro and Ferragudo.
Lagoa acts as the host to the Fatacil Exhibition Grounds on the east side of the town. Fairs and shows are held during the year, with the largest one at the end of August. This popular giant exhibition has local arts and crafts, live traditional and well-known pop groups, arts and crafts, equestrian displays, farming equipment and home furnishings, plus many other services and articles. Within easy reach is a popular Water Park which lies on the west side of the town. Also, there are two golf courses the 18-hole Gramacho Course and the 18-hole Vale da Pinta Course.
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