It is thought there were settlements in the Benidorm area possibly as far back as 3000 BC, including evidence of Roman and Punic remains. However, settlements in the area were small and it was not until the arrival of the Arabs that the local population began to grow during the era of the Umayyad dynasty. The Christian King James I of Aragon conquered the region in 1245 and Benidorm first officially became known in 1325, when Admiral Bernat de Sarrià of Polop awarded it a town charter as a way of removing the Moors and allowing Christians to inhabit the area. Strategically, the town was also used by Bernat de Sarrià to stop the rising power of Admiral Roger of Lauria, lord of Altea, in the south of the Kingdom of Valencia.[1]

Benidorm's history for the next few centuries was plagued by attacks from the sea by Ottoman and Barbary pirates. The 17th century saw conditions improve for Benidorm and its people, most notably with the construction of an advanced irrigation system in 1666 to channel water to the region. By the 18th century Benidorm fishermen had become famous and sought after all over Spain and beyond. Tuna was their main catch and they perfected the ancient almadraba technique dating from Islamic times. The success of the fishing industry, together with improved local agriculture, helped to fuel a strong local economy. Coastal traffic increased too, bringing more wealth to the region with the town becoming a base for sea captains and the building of their vessels.

In 1952 Benidorm's fishing industry went into decline; this was a factor in encouraging the town council to approve many new development plans aimed at the tourist market.[citation needed]