German farmers from the Rhineland were encouraged to immigrate and to settle on the Emperor's outlying lands, to help give the Palace a charming urban setting. The settlement of Petrópolis was founded on March 16, 1843. It became a city in 1857. The road connecting the city to Rio de Janeiro was opened in 1910 and paved in 1928. The urban design was carried out by Major-Engineer Julius Friedrich Koeler.
On a visit to the Philadelphia Exposition of 1876, Pedro II was impressed by Alexander Graham Bell's new invention, the telephone, and had a line connecting his Summer Palace to his farm headquarters.
Even after the establishment of the Republic and the exile of the Imperial family in 1889, the city continued to play a significant role in Brazilian history. It was a frequent choice as summer residence for presidents of the republic, who lodged at the Palace of Rio Negro. In 1903 the Rio Negro Palace saw the signing of the Treaty of Petrópolis with Bolivia, which gave Brazil the Acre territory
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