The history of the city of Ciudad del Carmen is closely linked to its strategic island location in the Gulf of Mexico. Situated on Isla del Carmen, this city has evolved from a pirate base into a vital economic centre of modern Mexico.
In the colonial era, the island, then known as Isla de Términos, became a haven for English and Dutch pirates. Thanks to its convenient location, they used it to repair ships and launch attacks on Spanish vessels. After numerous failed attempts, Spanish colonial authorities finally expelled the pirates on July 16, 1717. In honour of this victory, achieved on the feast day of Our Lady of Carmen (Virgen del Carmen), the island and the military settlement founded upon it were named Carmen. This date is considered the city's founding day.
The settlement's development was defined by several key factors. Its location on an island in the Términos Lagoon provided natural protection and control over maritime routes in the region. In the 18th and 19th centuries, the primary economic activity was the harvesting and export of "logwood" (palo de tinte) — a valuable dye source, which contributed to the port's growth. Additionally, founded as a military outpost for defence against pirates, the city maintained its defensive function for a long time.
In 1828, the settlement received the status of a villa (town), and in 1856, the status of a city (ciudad). Its early economy focused on maritime industries and the timber trade. The architectural appearance of the city centre, with its colonial buildings and main square, began to take shape in the mid-19th century. Cultural life was closely tied to Catholic traditions, reflected in the city's name and its main cathedral — Nuestra Señora del Carmen.