Olinda ([oˈlĩdɐ]), is an historic city in the Brazilian state of Pernambuco, located on the country's northeastern Atlantic Ocean coast, in Greater Recife (capital of Pernambuco State). It has a population of 389,494 people, covers 41.681 square kilometres (16.093 sq mi), and has a population of 9 inhabitants per square kilometer. It is noted as one of the best-preserved colonial cities in Brazil.
Several indigenous tribes occupied the coast of Northeastern Brazil for several thousand years, and the hills of the present day municipality of Olinda had settlements of Caetés and Tupinambá tribes, which were frequently at war. French mercenaries are thought to be the first Europeans to get to the region, but the Portuguese exploited intertribal rivalries and managed to build a stronghold on the former Caeté village in the higher hill. Recent studies by the Universidade Federal de Pernambuco [Federal University of Pernambuco] have uncovered new evidence of the pre-colonial population of the area. The settlement of Olinda was founded in 1535 by Duarte Coelho Pereira; it was elevated to a town on March 12, 1537. It was made the seat of the Territorial Prelature of Pernambuco in 1614, becoming the Diocese of Olinda in 1676. The economy of the region was dominated by the production of sugarcane. The importation of slaves from Africa to support the economy made Olinda a colonial stronghold. By 1600 its economy was based on sugar, and imported African slave labor had made it a colonial stronghold. Slavery existed in Olinda until the Lei Áurea, or Golden Law, abolished slavery in Brazil in 1888.
Olinda was the capital of the hereditary captaincy of Pernambuco, but was burned by Dutch invaders. The Portuguese built their town on the hill, for practical purposes (sewers) and to make it easier to defend. In the 17th century the Kingdom of Portugal was united with Spain (the 1580-1640 Iberian Union period). Taking advantage of this period of Portuguese weakness, the area around Olinda and Recife was occupied by the Dutch who gained access to the Portuguese sugarcane plantations. John Maurice, Prince of Nassau-Siegen was appointed as the governor of the Dutch possessions in Brazil in 1637 by the Dutch West India Company on recommendation of Frederick Henry. He landed at Recife, the port of Pernambuco and the chief stronghold of the Dutch, in January 1637. By a series of successful expeditions, he gradually extended the Dutch possessions from Sergipe on the south to São Luís de Maranhão in the north. He likewise conquered the Portuguese possessions of Saint George del Mina, Saint Thomas, and Luanda, Angola, on the west coast of Africa. After the dissolution of the Iberian Union in 1640, Portugal would reestablish its authority over the lost territories of the Portuguese Empire.
Olinda declined in importance after the Dutch invasion. Recife became the capital of Pernambuco in 1827. The city now serves as a suburb to the greater Recife metropolitan area. Due to the historic position of the city, its Cathedral, a World Heritage Site, São Salvador do Mundo, remains the primary seat of the Roman Catholic Archdiocese of Olinda e Recife, with a co-cathedral in Recife, while Olinda also has a Minor Basilica, again World Heritage Site (Minor): Basílica Abacial do Mosteiro de São Bento de Olinda.
The main economic activities in Olinda are based in tourism, commerce, transportation industry and artcraft. The tourist sector has a boom every Carnival when thousands of people are in the old historic town center.