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Carcavelos used to be known for the Carcavelos Wine, but since the wine production is nowadays reduced, Carcavelos is better known among surfers because of the good surfing condition of the Carcavelos beach.

Carcavelos also marks the mouth of the Tagus River. To the east side of the Carcavelos beach there is a huge fortification named Forte de Sao Juliao da Barra. It used to protect the Tagus river entrance from enemy ships. Currently it is used as the official summer residence of the Ministry of Defense.