In 1554, Jesuit priests José de Anchieta and Manuel da Nóbrega established the village of São Paulo on a high plateau overlooking the Tietê River. This location was selected for its accessibility to the local Indigenous tribes, who populated the region. The Jesuits aimed to create a mission where they could teach Christianity and European agricultural practices to the native populations. The founding of the settlement included building a small church and a school, intending to foster both spiritual growth and economic productivity in the area. Over the next few decades, the settlement grew, attracting settlers, traders, and other religious groups, making it a hub of cultural and societal interaction.

As São Paulo developed, it transitioned from a mission outpost into a flourishing town. The surrounding area, originally inhabited by the Tupi and Guarani tribes, gradually experienced transformed dynamics as colonizers expanded their influence. The integration of European culture significantly altered Indigenous lifestyles, leading to an intertwining of societal structures. By the 17th century, São Paulo became an essential point for the Bandeirantes, adventurers who sought wealth and resources, often leading expeditions deep into the interior of Brazil and beyond.

Through its growth, São Paulo played a crucial role in shaping Brazil’s economic and social landscape. The community became a melting pot of various cultures, languages, and traditions. By the 18th century, its prominence was further solidified due to the coffee trade, which would later propel São Paulo into one of the world's major coffee-producing regions. The city’s rapid urbanization and population growth laid the groundwork for its eventual designation as the financial hub of Brazil.