Olhão [ol’yau] is located 5-6Km west of Casa Flor de Sal and can be reached by bike, bus or car.

Olhão is at least 650 years old with its first known reference being from 1378 when it was a small settlement of fisherman's huts. In 1808 Olhão gained its royal town charter, as a 'thanks' for the town people's loyalty and for a remarkable action by some Olhanense fishermen: when Napoleon's armies invaded Portugal in 1807, the British Navy evacuated the Portuguese court to Brazil for safety. Once the British and Portuguese forces had defeated the French in June 1808, it was fishermen from Olhão who sailed all the way to Brazil in an 18m ship called 'Bom Sucesso' to give the good news to the Portuguese king. A replica of the ship can be seen at the small jetty in front of the markets.

Today Olhão is a 30,000 people town full of character. It is very Portuguese, very Algarvian and very un-touristic. The pedestrian shopping area winds in cobbled streets through the moorish-looking old town to the lovely waterfront with its markets, cafe's, park and views over the Ria Formosa lagoon and islands of Armona and Culatra. Olhão has the largest Algarve fishing port, supplying the Algarve and the rest of Portugal with fresh fish.

Probably the nest known place to visit is the twin fish and vegetable markets located side by side at the water front. They have a vast array of locally grown fresh fruit and vegetables and a huge variety of extremely fresh fish and sea food straight from the port. Here you can find scabbard, sole, sardines, tuna, moray eel, dried shark, all sorts of shellfish or even fresh as well as dried squid eggs. Ameijoas - the king of clams - is both grown and eaten in abundance and is a 'must-try' entreé, as are conquilas.

Olhão also has many shops and cafés, especially along its narrow cobbled streets, large supermarkets, restaurants, a shopping center called Ria Shopping and a festival devoted to sea food in August.

In the historic heart of the town, many of the buildings are the elegant (and often slightly run down) merchant's homes with wrought iron balconies, carved stonework and tile decorations. At the centre of the town, in the Praça da Restauração, is the church of Nossa Senhora do Rosário, built in 1698 with contributions from the fishermen. At the time, it was the only stone building in Olhão. It's a very graceful building with a baroque façade.

The building behind the church, on the other side of the square, is the Compromisso Marítimo -the fishermen's society, which was founded in the 18th century – it also houses Olhão’s town museum.

Olhão itself doesn't have a beach as it is on the Ria Formosa lagoon system but the ferries for the islands run from the quayside near the gardens at the eastern end of the market halls. There are regular services throughout the year, although fewer in number during low season.

Ilha da Culatra is surrounded by beautifully clear water, with many species of fish, so it is perfect for diving and snorkelling. Ilha do Farol is not a separate ilha, but the area at the western end of Culatra where the lighthouse is ('Farol' meaning 'lighthouse' in Portuguese) and again offers visitors a large expanse of sand and warm water. Ilha da Armona, the closest island to Olhão, has a few restaurants, cafés and large expanses of golden sand.