be diverted into a manmade stone-lined channel, running downhill, so that its rushing waters could be harnessed to turn the waterwheel of a mill. This laid the foundation for the future economic development of the village of Angra. At the same time, this allowed the area on either side of the river's course to be rearranged according to a rectilinear street-plan and organized into neighborhoods by function (commercial, residential, etc.), to accommodate the needs of the fast-growing port. The first houses of Angra were built on the hillside above the cove, the steep streets winding down to the shore. On high ground, away from the sea, a castle/stronghold/fortress was begun; it would eventually be named Castelo dos Moinhos (). By 1534, Angra was the first town in the archipelago to be elevated to the status of city. In the same year, it was chosen by Pope Paul III to be the seat of the Diocese of Angra, with ecclesiastical authority over all of the islands of the Azores. The commercial port of early Angra played an important role in the Portuguese East Indies trade beginning in the 15th Century. The bay of Angra was often full of caravels and galleons, a circumstance that contributed to the progress of the city and its people. The construction of a number of manors, convents, churches, and military fortifications in Angra, infrastructures that were usually inappropriate for a small city (or small island) indicates the important role that Angra played in trans-Atlantic shipping for the Portuguese. The Portuguese nobleman Pero Anes do Canto (1480–1556), who was born at Guimarães, was the superintendent of fortifications on Terceira. For his competency in that role, and other services to the Portuguese Crown, he was rewarded with the title moço fidalgo (knight-gentleman), and the high office of "Purveyor to the Armada of the Islands and the merchant vessels of the East India trade in all of the islands of the Azores" (a hereditary title that followed successive members of the Canto family for three hundred years). The importance and power of the Cantos can hardly be overstated. During the period when Portugal was trading with its Asian, African, and South American colonies, they were responsible for the protection and welfare of the merchant fleet (and the staggering wealth represented by the cargoes in their holds) once the ships approached the last leg of their voyages in the North