Vila Real (population 17,500) is located on a plateau above the headland formed by the gorges of the rivers Corgo and Cabril. This is where the oldest part of the town is located, framed by the slopes of the Corgo gorge.

The area has been inhabited since the Palaeolithic period. The rock sanctuary of Panóias bears witness to the presence of the Romans. However, during the migration period and the Muslim invasion, the area gradually became depopulated.

At the end of the 11th century the colonisation of the region was encouraged. It was not until 1289 that a charter from King D. Dinis founded the royal town of Panóias, which became the current town.