Administrative divisions of Portugal (on Terceira Island), the historical and cultural capital, is the home of the Azorean judiciary and seat of the Diocese of the Azores. Madeira is an archipelago that includes two principal islands, Madeira and Porto Santo, plus two uninhabited natural group of islands, the Desertas and Savage Islands (). The archipelago is located closer to Africa than Europe, is highly commercial and urbanized; its regional capital (Funchal) is developmentally comparable to urban centers in the Canary or Balearic Islands. The division of the Portuguese territory is established in title eight (Título VIII) of the Portuguese constitution: granting local authority to
Madeira the new settlers observed "a heavy black cloud suspended to the southwest." Their investigation revealed it to be the larger island they called Madeira. The first Portuguese settlers began colonizing the islands around 1420 or 1425. Grain production began to fall and the ensuing crisis forced Henry the Navigator to order other commercial crops to be planted so that the islands could be profitable. These specialised plants, and their associated industrial technology, created one of the major revolutions on the islands and fuelled Portuguese industry. Following the introduction of the first water-driven sugar mill on Madeira, sugar production increased to