The municipality had been a popular destination in Timor, due to its mountains and hot springs, but it suffered much violence in the
war for independence.
Balibó, located about 10 miles from the Indonesian border, was estimated by
Human Rights Watch to be 70% destroyed during the militia violence that preceded the referendum for East Timorese independence. It was also the site of the killing of five Australian-based journalists (the
Balibo Five) by Indonesian forces on 16 October 1975 during an incursion by Indonesia into what was then
Portuguese Timor. On 29 May 2001, former members of Dadaras Merah Putih who had become indebted to a cross border gambling ring in Maubusa, in retaliation they threw around four grenades over the
Loes River from the Indonesian side towards the market in the East Timorese side killing five, one of the leaders of the gambling ring were killed, but the other four were uninvolved, over 40 others were wounded in the attack. Their bodies were taken to the Indonesian side, and have yet to be publicly identified with the exception of a 20-year-old woman, Rosina Olaloco.