while the discovery of brazil is credited to pedro álvares cabral, the rio de janeiro stretch was discovered on january 1st 1502 by gaspar de lemos, heading portuguese explorers who believed guanabara bay to be the mouth of a huge river and therefore named the location rio de janeiro (january river). in 1503, the first portoguese settlement was established near a small river, on what is today flamengo beach - these were the houses that originated the word 'carioca.'

hoping to create a 'french antartica', in 1555 the french established a settlement, but they were driven out in 1567 by rival portuguese colonists - who in the meantime founded the city of são sebastião do rio de janeiro in 1565.

in fact, on the small beach ' praia de fora ', located between the sugar loaf ( pão de açúcar) and the morro cara de cão, estácio de sá officially founded the city on march 1st 1565, and named it são sebastião de rio de janeiro, as são sebastião was also the title of portugal's king at the time.