Paraibuna has its origins connected to the “bandeirantes” of the Seventeenth Century. The city lies on donated lands and it was founded by the governor of São Luiz do Paraitinga, Manuel Antônio de Carvalho, who controlled the place. Paraibuna was considered a village in 1832 and its name was Santo Antonio da Paraibuna and in 1857 it was already considered a town. It began to develop in the middle of the Nineteenth Century because of coffee growing. As a result of the decadence of the crops of coffee, its development lowers all of a sudden and its population begins to look for other alternative solutions for their development.

Due to the construction of CESP dams (São Paulo Electricity Company), Paraibuna finds new possibilities to use the waters in different kinds of activities.