This ancient town was founded by the Portuguese Manoel Lobo in 1680.
It is a famous UNESCO World Heritage site, situated on a promontory which juts into the Rio de la Plata on the Uruguayan side.
At the time of its establishment, the two contending colonial powers(the Portuguese based in Brazil and the Spanish in Buenos Aires) were engaged in a century-long period of wars.
Colonia was eventually ceded to the Spanish in 1777.
The architecture of Colonia del Sacramento reflects this historical heritage.