Gramado is a municipality and small touristic town, southeast of Caxias do Sul and east of Nova Petropolis in the southern Brazilian state of Rio Grande do Sul, in the Serra Gaucha region. Most of the population of Gramado is of German or Italian descent. Gramado is one of the towns along the scenic route known as Rota Romantica. In 1913, the town seat was moved to Linha Nova, the location of the present-day town center. At this time, Gramado was an unincorporated township within the municipality of Taquara. A railway arrived in Gramado in 1921, boosting the local economy. Gramado officially became a village in 1937, when Gramado was already known as a summer holiday resort.