The modern administrative status of the city of Arao was established on April 1, 1942, following the merger of several towns; however, the history of human settlement here spans centuries. Historically, this territory was part of Higo Province, and the first mentions of the area are associated with the development of agriculture and crafts at the foot of Mount Shodai, where stable communities formed long before the onset of industrialization.
Key factors in the city's formation were its favorable geography and natural resources. Its location on the coast of the Ariake Sea provided residents with access to seafood and convenient transport links to neighboring regions of Kyushu island. But the main driver of growth was the discovery of coal seams: the famous Miike Mine, one of the most important in Japan, was partially located within Arao, transforming a quiet agricultural district into a significant industrial center.
Before the industrial boom, the regional economy was based on rice cultivation and fishing, but as early as the beginning of the 17th century, a unique cultural phenomenon emerged here — the production of Shodai-yaki ceramics. This style of pottery, distinguished by its use of local clay and a special glaze, was originally created for everyday use, reflecting the practical and modest lifestyle of the early settlers.