Paraty is located to the south of the state of Rio de Janeiro, covering an area of 937 Km2, and sharing borders with the municipality of Angra dos Reis and the state of São Paulo. Until the XVII century, its only habitants were the Guaianás natives, as the city is geographically located between ocean and mountains.
The Discovery of gold in Minas Gerais turned Paraty into an important exporting port, developing its economy and trade with the states of Rio de Janeiro, Minas Gerais, and São Paulo. The trade of gold was followed by the production of sugar cane, liquor (aguardente), and coffee.