Carmen was founded on 10 June 1874 by a decree of
President of Uruguay,
José Eugenio Ellauri. A principal contribution to the town's economic development was the carpentery industry, as well as the wines produced by André Faraud in the beginning of the 20th century. On 4 July 1908, its status was elevated to "Pueblo" (village) and was given the name "Pueblo del Carmen" by the Act of Ley Nº 3.305. On 29 April 1975, its status was raised to "Villa" (town) by the Act of Ley Nº 14.363. ==Population==