The new village Luz (Aldeia da Luz) was built to rehouse the inhabitants of the old village of Luz, which was submerged by the waters of the Alqueva dam. The new village was designed to preserve, as much as possible, the main characteristics of the original settlement.

Discussions regarding the relocation of the inhabitants of Aldeia da Luz began in 1981. Three options were considered: compensating the residents financially, transferring them to a nearby village, or building a similar village. The latter option was chosen, as it was the one preferred by the local population.

Construction began in 1998 and was completed in 2002.

Festivals
Nossa Senhora da Luz (Our Lady of Luz):
30–31 August