It is a village of the district of Faro and is home to the city of 3 parishes Alferce, Marmelete and Monchique. This municipality is bordered by Odemira the north by east Silves, Portimão by the south by southwest Lagos and Aljezur west.

Monchique stands in Roman times when they sought the Caldas de Monchique for its healing power of its water, that the long centuries, this mountain range was up populating slowly until the sixteenth century, Monchique had a sizeable population to deserve a visit by king Sebastian and to be granted the town status.

Wool weaving activities and linen, or even those involving the chestnut wood, contributed to the development and rise of Monchique and in 1773, the village was promoted, moving away from Silves.

With the development of manufacturing processes that economically altered Monchique, in which it loses the textile activity and other activities manufactures. Currently, Monchique is a beautiful villa which offers an active crafts, a varied economy, heavily focused on tourism and handicraft production of products originated from the cultural and natural wealth of the Monchique mountains.