The settlement of the area began at the beginning of the 16th century. The origin of its name derives from the hilltop that was situated south of the settlement, a volcanic cone that first encountered during exploration of the island in the 16th century (and which scattered basaltic lava in its surroundings). The hilltop that the parish takes its name is today covered in
Eucalyptus (Eucalyptus globulus) while its top is occupied by to large
Araucaria trees. The development of the settlement was conditioned by a lack of water. By the 19th century, there 900 inhabitants in the parish, resulting in the construction (between 1802 and 1807) of the parochial church dedicated to Nossa Senhora dos Prazeres ("Our Lady of Pleasures"). On 16 June 1835 the parish was elevated to the status of civil parish, and the following the year the channeling of the first potable waters was succeed into the town. It was only in the 20th century that the parish developed initiatives to improve the quality of life in Pico da Pedra, which included the establishment of social centre, cooperative for habitation and consume, sports fields, a
Casa do Povo, daycare (in 1961) and seniors centres, and informative services. This included the full electrification of the center and neighborhoods in 1931. ==Geography==