Originally inhabited by Indians, Itacaré was settled by European Jesuits in the early 18th century.
Many African slaves were brought into the region when settlers discovered the value of Cacao and the potential of the region for its growth.
Some of the earliest buildings, like the São Miguel church and the House of Jesuits, are still defining the town's appearance.
However, by far the biggest part of the numerous historical buildings in Itacaré remain from an intense cacao-boom during the late 19th and early 20th century when the town became the main Bahian harbor for export shipments of the "planted gold" (cacao).