Located at Ribeira de Alvoco in the Natural Park of Serra da Estrela in a spot of fertile lands and abundant water, the main activity of the village Alvoco da Serra was livestock breeding, especially goats and sheep, as well as the cultivation of agricultural fields in slopes, located in the surrounding area.

In those days all fields were used for agriculture and a strict water management was carried out through rules and schedules that all had to obey. Those were the water cycles that met the needs of watering and wool factories.