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Attracted by swift-flowing streams, the first settlers built many water-mills as a way to pay rent to the captains "Donatarios", rulers of the land. In 1507 the settlement received a town charter from King Manuel. The weaving of linen and wool brought the town prosperity in the 18th and early 19th centuries. Ribeira Grande's wool industry underwent a great deal of development with the arrival of French workers during the reign of Louis XIV (1716) which brought with them the knowledge of the great manufacturing schemes of Colbert. Ribeira Grande's prosperity and growth along the times led to being given the status of a city in 1981.

Ribeira Grande's interesting places to visit are: Church of Nossa Senhora da Estrela; Church and Monastery of Sao Francisco; Church of Espirito Santo; Church of Nossa Senhora da Conceicao; Town Hall and Historical centre.