With a little over three thousand inhabitants, the main economic motor of Pegalajarcontinues being its olive grove, which cover the foothills and valleys of this town in Sierra Mágina, espacially on the Bercho mountain, where mechanical methods are difficult to implement and farming labours are still performed in the traditional manner. the product is a singular olive oil, fruit os a thousand-year-old culture which has always treated its extra virgin olive oil with love and care. Its centuries-ols history, its health benefits, and its important organileptic properties all combine to make this an outstanding olive oil.
Pegalajar as been inhabited since remote times, as clearly demosntrated by the lithic materials and bones remains found in the caves of the Majuelos: two natural caves located at the north of the town, beside the regional road which links the towns of Mancha Real and Pegalajar. The first one of these caves, known since ancient times and quite large, has an extensive chamber which is covered by an impressive dome of natural stone. Today is used as a restaurant and area for several functions. The second one was discovered in the mid seventies. It had a narrow and difficult entrance convered by stone.It consist on several conected small chambers. It has been adapted for visits and now offers one of the best karst formation examples in the province of Jaen. Iberian and roman influences can be seen at several points in the area of Pegalajar, with small cementeries and Villas, indicating the existence of a dispersed populated habitat with an agro-livestock based economy; with the olive as one of the main crops. The olive cultivation continued into the middle ages with the appearance of ancient mills.
The insecurity in the middle ages caused the population to take shelter aroun the castle of Pegalajar. However, the traditional agro-livestock economy continued. the olive grove continues being very important. The name of Pegalajar (or "Peña de la Vega") arose in the Arabic period. A fortified place which was conquered by Ferdinand III in 1244, and which had its own oil mill by the mid of the fifteenth century. The mill was used to crush the olives from the olive grove of Pegalajar, which at this time was located in the most fertile area - where century old olive trees can be found.
At the end of the Christian Reconquest, with the fall of the muslim kingdom of Granada, Pegalajar grew in popilation an Phillip II exempted Jaen and garnted it the title of "town" ( On June 3rd, 1559), in exchange for services to the crown established at 2.550.000 maravedi. Pegalajar´s olive grove started to expand slowly with the tilling of new lands, especially those of Dehesa Bercho: aqn ancient bear hunting ground bought by the inhabitants to the Crown in the XVII Century.
In the XVIII Century the vast majority of the olive tree planmtations occupied the most fertile lands in the area (the river and the orchard) which were also used for for growing vineyards and crops. Olive oil continued being the main crop produced in the area. From mid nineteenth century the olive grove started to expand gradually. This growth continued on the next century, replacing the land used for other crops and extending onto the Bercho foothills, highly valued for the excellence of its oil and subsequent commercial worth.
