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The name of the town derives from the Latin term oppidum, meaning "citadel", or "fortified city". The area was taken from the Moors in 1148, and the town received its first charter in 1195, under the reign of Sancho I.
The concelho has an extent of 142.17 km² in area and 10,875 inhabitants (2001), and is subdivided into nine freguesias (parishes). It is bounded in the northeast and east by Caldas da Rainha, in the south by Bombarral, in the southeast by Lourinhã, in the west by Peniche and in the northwest by the Atlantic Ocean.
Óbidos is also a town in Brazil located at the narrowest and swiftest part of the Amazon River. As a result, Obidos is the name used by Amazon.com for part of their site engine, and appears in all search result URL's.