In 1850, Irineu Evangelista de Souza, the Baron of Mauá, committed to the construction of a railway, and in 1856, an Imperial Decree granted him the privilege of construction and a 90-year term for its operation. By 1860, he managed to gather enough capital and formed the company The São Paulo Railway Company Ltd. – SPR to build it. Paranapiacaba emerged as a camp for the workers who constructed the section through the Serra do Mar. With the inauguration of the railway in 1867, the company was obliged to keep workers on-site for service operations and maintenance of the works. Following the duplication of the railway, a new village was built in Alto da Serra, named Martin Smith, featuring tree-lined streets with regular alignments and water and sewage systems.
In the 1940s, the village underwent two significant interventions: in 1945 it was renamed Paranapiacaba, and the following year, the São Paulo Railway Co. was incorporated into the Union’s Heritage and began to be managed by the Estrada de Ferro Santos a Jundiaí – EFSJ, thus ending the presence of the English in the region. Upon receiving the heritage in 1946, the federal government made efforts to maintain the quality of cargo and passenger transport 
that the English had until then.
During the time of the English, the Vila de Paranapiacaba had a certain European, romantic air, with wooden houses, yards separated by living fences, and calm streets lined with pines, in contrast to the Parte Alta, which received urban occupation marked by Portuguese heritage, with narrow streets and small-front houses built along the alignment. Connecting the Parte Alta to the Parte Baixa is a metal bridge intended exclusively for pedestrians and bicycles, which remains today after some renovations.
In 1982, the Funicular System built by the English ceased operations. It marked the end of an era of glamour and the beginning of a struggle for the preservation of what remained of the history of the English railway. A movement began to repurpose Paranapiacaba to transform it into a tourist hub. In April 2000, Paranapiacaba officially became one of the cores of the UNESCO Biosphere Reserve program.
On June 5, 2003, World Environment Day, the Nascentes de Paranapiacaba Municipal Natural Park was created, a green area of about 4.2 km² of Atlantic Forest surrounding the village.
Today, Paranapiacaba has two museums: the Castelinho, a Victorian construction that served as the residence for the Chief Engineer, the highest authority of the English railway, which preserves the memory of the times when the São Paulo Railway Co. was operational, and the Funicular, which consists of three sheds located in the railway yard, where it is possible to see locomotives, the funeral car, fixed machines, and smaller parts, such as the oiling machine used to lubricate the machines. Outdoors, one can see the ambulance train, already quite rusty, and the steam crane train.
Paranapiacaba is surrounded by three important Conservation Units: the Nascentes Park mentioned above, the Biological Reserve of Alto da Serra de Paranapiacaba, and the Serra do Mar State Park. The forests, parks, and waterfalls surrounding the village create a fantastic natural setting, which can be traversed by trails of easy or difficult routes and require the accompaniment of a guide registered by the City Hall. Among them, the most well-known are the trails of Pontinha, Mirante, and Água Fria.
In 2001, the 1st Winter Festival of Paranapiacaba was held in the village, with much anticipation. Visitors arrived via the metal walkway that connects the Parte Alta to Vila Nova; the shows were concentrated at the Clube União Lyra-Serrano, once the stage for grand balls and performances. The Festival continues to occur annually, expanding with various artists performing on stages spread throughout the village and is currently one of the most well-known events in the Municipality. During the Festival, several attractions, in addition to artistic and cultural ones, are offered to visitors.
In April, the Cambuci Festival takes place, celebrating a native fruit of the Atlantic Forest that has been a registered trademark of the region and an intangible heritage of Santo André since 2013, where various dishes, sweets, and beverages using the fruit as a main element are offered.
Other events, such as the Convention of Witches and Wizards, the Patron Saint Festival, and the Arts and Antiques Fair, occur throughout the year.
Listed as a historical heritage by federal, state, and municipal preservation agencies (IPHAN, CONDEPHAAT, and COMDEPHAAPASA), Paranapiacaba is currently undergoing a restoration process financed by the Growth Acceleration Program – Historic Cities, of the Federal Government.
Source: www.santoandre.sp.gov.br