Lagos is a city and municipality in the district of Faro (Algarve), the most southern region of continental Portugal. The history of this city, considered the most beautiful in the western Algarve, is closely linked to the sea. Lagos is situated in the western Algarve directly on the rocky Atlantic coast. This coastal strip of the bay of Lagos is known as Costa d’Oiro ( Gold Coast) thanks to golden cliffs with fascinating formations that extend to the world famous Ponta de Piedade at the southern edge of the bay.