in the early 20th century the lagoon experienced an episode of stagnation and the canal of the jardim de alah was built to allow the water to flow to and from the ocean. in the 1920s lagoa underwent sanitation reforms under the administrations of francisco pereira passos and also carlos césar de oliveira sampaio.

whole neighborhoods were built by the waterfront of lagoa rodrigo de freitas, along epitácio pessoa avenue in upscale fashion - this location today is also home to the elite jockey club brasileiro.

being predominantly residential, lagoa offers less commerce than the neighbouring ipanema and copacabana, however there are a number of restaurants and kiosks along the water's edge.