Águas de São Pedro
Recognizing the importance of the thermal springs in the region, the São Paulo State Government on 19 June 1940 founded the (Hydromineral and Climatic Spa of Águas de São Pedro). Despite this, the city celebrates its birthday on 25 July, the date in 1940 of the founding of the first major building in the city, the "Grande Hotel" (now "Grande Hotel São Pedro"). The municipality of Águas de São Pedro was incorporated by State Law No.233, of 24 December 1948.
Alagoas
Some time later, Duarte Coelho, owner of the captaincy of Pernambuco, gave the control of the region back to the Portuguese, running the territory as part of his captaincy. He increased the number of sugar cane plantations and built some sugar mills, as well as founding the cities of Penedo and Alagoas – this last one originally baptized by Portuguese as Santa Maria Madalena da Alagoa do Sul (Saint Mary Magdalene of the Southern Lake), currently the historic heritage town of Marechal Deodoro.