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Ílhavo received its rights on 13 October 1296 from King Denis of Portugal and is composed of four parishes. The city lies within the District of Aveiro. On 9 August 1990 it was elevated to the rank of a city. José Agostinho Ribau Esteves of the Social Democratic Party is the Mayor. There are 28,749 people eligible to vote (2006). The municipal holiday is Easter Monday.

Several stories have been gathered as part of the popular history of this city:

Traditionally, the local women - as Ilhavenses - are famed for their great beauty. It is claimed the city was founded by Greek colonists around 400 BC to whom the beauty of 'Ilhavenses' women is attributed, but others state that we have to thank Phoenician settlers for that.

Ilhavo's national nickname is "the city of the lamp" (a cidade da lâmpada). According to legend, one Sunday during Mass, one of the most important relics of the church (an oil lamp) was stolen in front of everybody and was never found. The myth continued and the Ilhavanses became known as "the natives who were too blind to see what was right in front of them".