The name of Faro do Alentejo comes from its founder, D. Estêvão de Faro, a very important person of the time of the Spanish domination. He was Commander of numerous lands of the Order of Christ, overseer of Finance of India and Africa and state councillor.
The reality before the foundation of Faro do Alentejo is unknown. It will not be, however, unreasonable to think that many workers already lived in the rural estate. D. Estêvão de Faro gave the ground to build the square and the public garden. The donation of land was a formal act and so a document was drawn up in 1626. Therefore, on the top of the gentle slope in which are the streets, the square was created. There, people could find all the civil powers: the Town Hall, where there was the prison, and in the middle of the square, the pillory. All these structures disappeared when Faro do Alentejo lost its municipal status, becoming incorporated in the town of Cuba, since 1872. The Parish Council and a Day Centre are now in the old Town Hall building.
