The Boachás, who populated the rich mountains near the river that now inherits their name, were the first people to settle the area. The pioneers Domingos de Lana and Cassimiro de Lana arrived in Raul Soares on January 20, 1837 from Mariana, expelled the native population, and took possession of the mountains. In 1841, the territory was sold to Francisco Alves do Vale, who settled there with his family. After his death, in 1925, his children - José, Jacó, Francisco and Manoel Alves do Vale - donated part of the land to create the chapel of St. Sebastian. The original chapel was founded by Father Francisco Antonio de Carvalho, a vicar of São Pedro dos Ferros, who later moved to live near the church. According to a deed dated October 29, 1873, João Pinto de Oliveira, a wealthy man, donated five acres of land. The village formed out of this land was called São Sebastião do Entre Rios for its location between the Matipó and Santana rivers. The town grew slowly and in 1902, the district of Rio Casca was formed. In 1923 it became a municipality and took the name Matipó. In 1924, the local council accepted the name for the area as Raul Soares, in honour of the writer, lawyer, politician and professor and then Governor of State, Dr. Raul Soares de Moura. Soares was sworn in on September 7, 1922, and later died from a heart condition while still in office. The creation of the municipality of Raul Soares was authorised by State Law No. 843 on September 7, 1923. Initially, the consolidation council was composed of individuals who would exercise the executive and legislative powers. But as the Mayor and City Council formed with the people's consent, the broader municipality was created. The new municipality was formally installed on January 20, 1924, under the direction of the first elected councilmen and with the creation of the first town hall. Joaquim Miracles Sobrinho, João Domingos da Silva, Raphael Raymundo Coelho, José Maria de Souza, Francisco Costa Abrantes, Joaquim José da Silveira and Carlos Gomes Brandão were members of governing body of the new council. Councilman Raymundo Raphael Coelho was the chairman of the elected municipal council. At that time there was no mayor and the president of the chamber had to perform both functions. January 20th was celebrated as independence day, and is the anniversary of the emancipation policy. On September 19, 1924, the administrative council changed the day's name to Matipó of Raul Soares. It is also the day of patron saint San Sebastian. The city serves as headquarters of the manufacturing company St. Sebastian Industrial SA. The region is also a significant producer of coffee. A considerable portion of the area's industrial and agricultural output is exported worldwide.
