On August 21, 1520, Queen Dona Leonor fulfils the request of the city of Silves to establish a settlement on the site of Ferragudo with her decree. That is why the main square is named after her and Ferragudo officially celebrates its 500th anniversary this year. Below we have translated, as well as possible, the letter from old Portuguese into an understandable text that serves to show the intention.

Silves was then the capital of the Algarve and the bishop had his seat there. But the significance of Silves was greatly diminished. At the time Lagos had already become more important because of the discovery voyages and the trade that resulted from this. The silting of the river made Silves less accessible and the new city ´Vila Nova de Portimão’ became more important. In addition, the infectious plague had settled in Silves. The bishop Dom Fernando Coutinho therefore hardly spent time in the city and sought for the citizens of Silves and for himself a healthier location that could compete with the growing Vila Nova de Portimao on the other side of the river.

“Dona Leonor, by the grace of God, Queen of Portugal and the Algarves on this side and beyond the sea in Africa, Lady of Guinea – With this decree we want to inform everyone concerned that we have decided to establish a settlement on the place of Ferragudo on the outskirts of our town of Silves, making this place part of the town, because we believe this is a privilege and an improvement for the people who are going to settle here, and people who are experiencing pressure because it is necessary to incur costs do not need to move outside the city. With respect for what has been said, so that everyone can come to this place to inhabit it freely and without fear, with this decree we promise and guarantee that this population will remain part of the city forever and never under the supervision of any other party and will be forever connected to this city as are the other places in this area. And the growing population will have the same government and rights and will always be united with this city. And we ask the gracious King, my brother, and the prince, our beloved and dear cousin, and the kings who come after him, to fulfill and preserve this in the service and for the honour of your kingdoms.“

So the citizens of Silves who want to get out of the city do not have to experience pressure and incur no costs, because Ferragudo remains connected to Silves forever. The new residents keep the same rights as they have in Silves. Centuries later, this promise and guarantee would give a lot of turbulence in the region. Dona Leonor is both Queen of Portugal and Queen of the Algarve. And not from one Algarve, but two Algarves.