In the region there was a spring with a dam that supplied water to the small settlement that had grown around a chapel dedicated to Our Lady of the Light, or Nossa Senhora da Luz. The first name of the town was Nossa Senhora da Luz do Aterrado, or Our Lady of the Light of the Dam.
Services, small industries, and agriculture are the most important economic activities. Charcoal production from eucalyptus plantations is also important. In 2005 there were 78 transformation industries employing 540 workers and 342 retail units employing 926 workers. The GDP in 2005 was approximately R$158 million, with 11 million from taxes, 77 million reais from services, 17 million reais from industry, and 52 million reais from agriculture. There were 651 rural producers on 69,000 hectares of land. 183 farms had tractors. Approximately 1700 persons were occupied in agriculture. The main crops are coffee, rice, beans, and corn. There were 96,000 head of cattle, of which 24,000 were milk cows. There were 5 banks : Banco Bradesco, Banco do Brasil, Banco Itaú, Caixa Econômica Federal, Crediluz. There were 3 hotels: Hotel Turista, Hotel Oeste, and Hotel Planalto. In the vehicle fleet there were 2632 automobiles, 252 trucks, 326 pickup trucks, 19 buses, 43 micro-buses, and 857 motorcycles.
Health and education
In the health sector there were 8 public health clinics and 1 private hospital with 56 beds.. Patients with more serious health conditions are transported to Belo Horizonte. Educational needs of 3800 students were met by 10 primary schools, 2 middle schools, and 4 pre-primary schools.
State ranking: 35 out of 853 municipalities as of 2000
National ranking: 537 out of 5,138 municipalities as of 2000
Literacy rate: 90%
Life expectancy: 71
In 2000 the per capita monthly income of R$369.00 was above the state average of R$276.00 and below the national average of R$297.00. Poços de Caldas had the highest per capita monthly income in 2000 with R$435.00. The lowest was Setubinha with R$73.00. The highest ranking municipality in Minas Gerais in 2000 was Poços de Caldas with 0.841, while the lowest was Setubinha with 0.568. Nationally the highest was São Caetano do Sul in São Paulo with 0.919, while the lowest was Setubinha. In more recent statistics Manari in the state of Pernambuco has the lowest rating in the country—0,467—putting it in last place.
Notable people
Ronaldo Costa Couto, writer
Belchior Joaquim da Silva Neto, writer and the second bishop of Luz Diocese
Vicente Joaquim Zico, former archbishop of Belém do Pará